Empire Energy says its Beetaloo assets not subject to price cap
Sydney-listed Empire Energy on December 12 said its Beetaloo assets in Northern Territory are not subject to the Australian domestic gas price cap announced last week.
The Australian government December 9 said gas prices will be capped at A$12/gigajoule (GJ) for 12 months, with the government to contribute to costs.
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“The gas price cap does not apply to gas from undeveloped fields,” Empire said. In relation to this exemption, the government stated: “New sources of supply from undeveloped fields will be exempted from the cap, and instead be covered by the reasonable pricing provision, to ensure incentives to invest in new supply are maintained.”
A consultation period for the mandatory code of conduct, including the reasonable pricing provision, will be open until February 7, 2023.
Empire added that it intends to make submissions during the consultation period to highlight the important role that the company’s Beetaloo basin gas resources can have in providing material additional supply to the critically short east coast gas market in years ahead.
“Clarity on the detail and intended function of the reasonable pricing provision will be critical in determining future investment decisions on supply of gas into the domestic market,” the company said.