To meet national energy needs, policy frameworks must recognise the importance of commercial incentives.
Investment decisions made by APPEA member companies provide Australians with reliable, competitively priced energy that is produced under rigorous environmental and safety management regimes.
To encourage continued investment that underpins energy security, Australian energy policy must address:
- the need to increase the proportion of energy produced by natural gas
- fiscal, greenhouse policy and other issues affecting the competitiveness of Australia’s liquefied natural gas exports.
A level playing field for gas
APPEA strives to ensure that market conditions allow natural gas to compete effectively and on a level playing field for power generation and process energy in Australia. Any final decision on the choice of fuel inputs should be based on a fuel’s intrinsic economic and technical merits, not political considerations.
A comprehensive national energy policy
A key element of the Federal Government’s national energy policy is the Energy White Paper that was released in November 2012.
APPEA is pleased that the Energy White Paper clearly articulates the important role that Australian natural gas will play in delivering economic growth and energy security, both domestically and via exports to Asia.
The White Paper also recognises the critical importance of market-based energy policies. Only a market-based energy policy framework can enhance Australia’s attractiveness as a place to do business and encourage the tens of billions of dollars worth of gas industry investment still to be approved.
It is important that gas is seen no differently to other major export commodities such as iron ore, coal and wheat in that the benefits associated with development are maximised through links to international markets.
APPEA also welcomes the White Paper’s advocacy for reducing red and green tape that continues to limit the development of Australia’s immense gas resources. Establishing more effective regulation, including less duplicative planning processes and more timely approvals processes, is a very important step in securing future supplies of gas.