Approvals, access to finance and state gas bans are holding back dozens of gas projects needed to stave off a shortfall, with the problem worsened by the gas market intervention.
A looming gas shortfall that the competition regulator says will start as early as 2027 may be made worse by the federal gas price intervention and recent federal court decisions, gas producers and market analysts warn.
By 2034, the long-forecast shortfall in supplies on the east coast was expected to be as large as 300 petajoules, equating to more than half existing east coast demand, the watchdog said. It urged governments to support the development of new gas fields and pipelines.unless gas is diverted from export from Queensland.
“The biggest challenge for the smallest producers is funding,” said Tor McCaul, CEO of junior producer Comet Ridge, which has frozen plans for a pilot gas project in Queensland because of the intervention.“We don’t fund out of cash flow, we need to get debt or equity, and investors and markets don’t like uncertainty, and this has really generated an enormous about of uncertainty,” Mr McCaul said.
“Daniel Andrews went to the election on a promise of lowering cost of living and cheaper energy p[rices and he has failed at the first hurdle,” Mr Hodgett said. John Ellice-Flint, chairman of Queensland explorer Blue Energy and a former CEO of Santos, has long called for progress on a pipeline to link the 150,000 PJ of gas in the North Bowen Basin to the south, requiring a link between Moranbah and the Wallumbilla gas hub.
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