none

Gas price rise to hit industry hard

16-06-2014
by 
in 

Dramatic rises in NSW retail gas prices will have a serious flow-on affect to industry, the AiGroup warns.

Industry uses the bulk of gas in NSW, says Australian Industry Group NSW Director Mark Goodsell.

“It is jobs and investment that will be hit by the ongoing increase in costs,” he said.  

“Gas is a clean efficient fuel for aluminium, cement, food processing, foundries, paper, steel and much more, and an essential feedstock for chemicals, fertiliser and explosives.

“While some businesses can pass through cost increases to customers, many are trade-exposed and will simply have to wear the cost.  That means a hit to profits, reinvestment, and ultimately jobs.”

Mr Goodsell said the LNG boom in Queensland has many benefits, but it is driving up gas prices across the Eastern states to parity with export prices.  

That situation is made even worse by the apparent lag between surging demand and more slowly growing production.  

“We could see prices rise even higher than export parity as a result, particularly if NSW and other states continue to put excessive barriers in the way of safe gas development.”

Mr Goodsell predicts gas users will see wholesale gas prices double or triple from their historic average – even if governments stop blocking production.

He called for a “comprehensive response” from all levels of government.  

“There is a lot to do.  Unblocking production barriers while maintaining safety is perfectly possible with sensible policy and good engineering – and the gas is badly needed to limit price spikes.”

Related news & editorials

  1. 17.07.2019
    17.07.2019
    by      In
    Industrial drives specialist Bonfiglioli has doubled the size of its Victorian headquarters with its move to a new and expanded facility in Carrum Downs.
    The new 1000m2 facility – with expanded quality assurance, testing and production engineering capabilities – can accommodate stock levels double... Read More
  2. 16.07.2019
    16.07.2019
    by      In
    Closer ties between Denmark and Australia were certainly the order of the day at the recent opening of the new Nilfisk Australia headquarters at Arndell Park in Sydney’s west. The ribbon cutting ceremony was a three-way affair between Danish Ambasador Tom Nerring, Nilfisk Pacific MD Michael Hansen... Read More
  3. 16.07.2019
    16.07.2019
    by      In
    Two German companies have signed a joint venture agreement to manufacture lithium-ion batteries for industrial trucks in the Europe, Middle East and Africa. Intralogistics solutions provider Kion Group AG, the parent company of premium industrial truck manufacturers Linde and Still, and lithium-ion... Read More
  4. 16.07.2019
    16.07.2019
    by      In
    Mouser Electronics has announced a new global distribution agreement with Xilinx, a leader in adaptive and intelligent computing, to stock one of the industry’s broadest portfolios of Xilinx products, including digital downloads of development software and IP. Xilinx is the inventor of the field-... Read More