Australia Offers Production Sweetener

Australia has opened applications for a A$26mn ($20.67mn) Gas Acceleration Program (GAP), which is designed to accelerate new supplies from onshore gas developments to the domestic market.

“Australia has significant gas reserves that can power our economy and earn export dollars,” the minister for resources and Northern Australia Matt Canavan said January 15.

“Estimates suggest there could be the equivalent of about 40 years’ worth of gas yet to be developed in Victoria, while the Northern Territory is said to be sitting on more than 200 years’ worth of gas,” he said.

He criticised moves by both of those regions for putting onshore gas developments on hold through moratoria and bans.

“Australia can’t become complacent and other States and Territories can’t just rely on Queensland to bail them out,” he said.

“Without an export industry, the Queensland coal seam gas sector wouldn’t have been developed. But Queensland gas is now supplying both the Australian market and the export industry,” he said.

He said that government wants to work with all States and Territories to develop their gas resources and that GAP will provide A$6mn for each project that demonstrates proven prospects of bringing “significant new gas volumes” to market by mid-2020s.

“We have access to the best science to develop these resources. The experience from Queensland shows these resources can be accessed in a way that also balances the needs of agriculture and the environment,” he said. The program is a component of the government’s A$90mn investment in gas security, reliability and affordability, in the wake of high energy prices in the past year and gas intended for export being diverted to onshore markets.

The application period for GAP closes February 13.