Australia, the largest LNG exporter to North Asia ahead of Qatar and the US, is now taking measures to underpin its own energy security by accelerating seven priority natural gas infrastructure projects and plans to give them government start-up funds to help protect Australia from potential global energy shortages and keep downward pressure on prices.
Under the Future Gas Infrastructure Investment Framework Expression of Interest process launched last year, an additional A$50.3 million (US$37M) will be invested as initial grants in seven priority projects, as well as key carbon-capture and storage projects.
Minister for Industry, Energy and Emissions Reduction Angus Taylor revealed the plan and said the government was working with industry to accelerate the “priority projects” to ensure Australia did not experience the “devastating impacts of a gas supply shortfall” as seen in Europe.
Support
“Our investment will help keep the lights on and homes heated in southern Australia, and support our industries and businesses to keep operating,” stated Taylor ahead of the Southern Hemisphere winter season.
“Our National Gas Infrastructure Plan, highlighted the critical need for more gas storage to provide greater supply flexibility during winter peaks, along with the need to get more northern gas to the south,” he explained.
“That’s why we are investing in seven priority projects as part of our gas-fired recovery, to make sure Australia has adequate supply and storage to avoid expected shortfalls in production in southern Australia that could emerge by 2024,” declared the minister.
The seven infrastructure projects that support government priority actions and have been selected for “early works” support and funding.
They are: In the state of Victoria - the Southwest pipeline expansion project (APA Group) and the Heytesbury Underground Gas Storage project (Lochard Energy).
In state of Queensland: the Project Range project (APA Group) and the Surat Hub project (APA Group) and the Gas Infrastructure Hub project in the Bowen Basin (Transition Energy Corporation Pty Ltd).
Along the East Coast, the selected project is the East Coast Gas Grid Expansion Stage 2 (APA Group).
In the Northern Territory, a feasibility study will be started into the most efficient infrastructure to deliver natural gas from the Beetaloo sub-basin to the East Coast gas market.
