APA Group CEO attacks government's LNG import terminal plan
The CEO of Australia's largest gas infrastructure owner has thrown cold water on the federal government's suggestion that LNG imports could be used to plug impending gas shortages on the east coast.
The head of the country’s largest gas pipeline owner APA Group has attacked a key component of the Albanese government's new gas policy, claiming it will send consumer prices skyrocketing.
APA Group CEO Adam Watson told the Macquarie Investment conference in Sydney on Thursday that while the government's new policy confirms gas will play a role in the energy mix for decades to come, allowing import terminals to be built to satisfy predicted shortages in the second half of this decade would “dislocate” the market.
“We know that coal-fired power stations and LNG import terminals are not the solution to address these gas supply problems. And we know that there are going to be higher emissions and if we rely on LNG imports it’s going to set the price for domestic gas.
“And we know that industry, most of which are dependent on gas, can’t absorb higher costs, and industries like steel and fertilizers - you can’t operate these industries without gas. And if [you’re making these products] you’re operating on a world stage, so you can’t afford to be paying higher prices.”
