none
none

Industry hard hit by rising gas prices: AiGroup

01-05-2014
by 
in 

Steep rises in NSW gas prices will have a massive impact on industry, the Australian Industry Group has warned.

Australian Industry Group NSW Director Mark Goodsell called on state and federal governments to ease pressures on supply and price.

“The impacts of rising gas prices are only just starting to be felt. There is much more to come,” Mr Goodsell said.
Mr Goodsell blamed gas exports from Queensland for raising prices across the Eastern states to export parity.

“And with gas production apparently lagging behind the huge growth in export-driven demand, prices could well spike above international parity, he said. “At a minimum, gas users face a doubling or tripling of the wholesale gas prices that have underpinned key sectors of our economy.

“State and federal governments need to respond, and there is much they can do to ease pressures on supply and price.”

Mr Goodsell said safely increasing production of coal seam gas and other unconventional resources is possible with smart regulation.

“And it needs to happen if we are to avert the risk of prices spiking above export parity.” Mr Goodsell said gas market reform is needed to drive greater competition and transparency.

“And a national interest assessment is needed before any future expansion of the gas export sector, to ensure we avoid a repeat of the current mess.”

Gas is a vital feedstock for chemicals, fertiliser and explosives, and a clean efficient fuel for aluminium, cement, food processing, foundries, paper and steel.

“Some businesses will be able to pass on their costs to households and other customers, but trade-exposed businesses won’t, Mr Goodsell said. “That means a hit to profits, reinvestment, and ultimately jobs.”

Related news & editorials

  1. 21.11.2017
    21.11.2017
    by      In
    Darcy Ewing of Kurrupt Kustoms in Albury NSW was running compressed air from a 6-year-old reciprocating piston-style compressor when (in his own words) it virtually “S*** itself!”.
    This left his high-end auto body and customisation shop in real trouble with a total shutdown of all essential... Read More
  2. 21.11.2017
    21.11.2017
    by      In
    If the recent upheavals in Australian manufacturing illustrate one truth, it is the absolute necessity for forward planning, and more to the point, the importance of planning for growth – regardless of a company’s existing size.
    While the ambition to grow a manufacturing operation is one thing,... Read More
  3. 21.11.2017
    21.11.2017
    by      In
    Blockchain technology was invented to make the world’s first crypto-currency, Bitcoin, possible. Traditional currencies rely on intermediaries like governments, banks and clearing houses to guarantee their value and process transactions. Bitcoin uses digital technologies to cut out these middlemen... Read More
  4. 21.11.2017
    21.11.2017
    by      In
    Australian Tank Engineering (ATE Tankers) has been engineering and manufacturing tankers in Australia for nearly two decades. But whereas most vehicle manufacturers have seen sales decline in recent years, ATE has elevated itself through the trend with a transformative mindset that has enabled the... Read More