For attribution to Squadron Energy CEO Rob Wheals
Reserved gas can only keep families warm and industry running if it can physically reach Victoria and NSW.
The final Bill is an improvement, but Parliament has an opportunity to make clear that reserved gas can reach Australian customers through any practical and commercially viable route – including LNG shipping and regasification, not just pipelines.
By not explicitly recognising LNG shipping and regasification as a supply pathway, the Bill risks the benefits of the scheme being pushed back for years.
This deal isn’t done yet.
Consumers shouldn’t be locked into unnecessary long-term infrastructure costs of a great big new pipeline simply because the legislation fails to recognise an existing alternative.
LNG terminals and pipelines should compete on their merits, with the scheme remaining neutral about how the gas gets to customers.
Importantly, this renders the inclusion of an infrastructure-based exemption unnecessary.
Otherwise, there is no guarantee domestic gas will flow to households and businesses in NSW and Victoria in the short to medium term.