Ann: Government Mandatory Gas Code of Conduct update, page-4

the Aust just now
Extract only
Government exemptions woos gas industry but code of conduct resentment remains

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Cooper Energy chief executive Jane Norman said the final text gives certainty to the company, and shares in the company rose more than 5 per cent in early trading.

“We welcome policy certainty and stability, in the form of the gas code, to facilitate investment into new gas supply,” she said.

“Our aim is to support the energy transition by providing much-needed new domestic gas supply to the Southeast Australian gas market, complementing the growth in variable renewables and ensuring energy is affordable, reliable and lower emission for Australian businesses and households.”

Cooper Energy is one beneficially as it produces less than 100 terajoules of gas a year, making it exempt from the price cap on uncontracted gas.

While the gas industry will privately welcome the exemptions, insisting the sector is providing lucrative returns to government and recent price spikes were driven by supply issues – it will stoke criticism over the need for Labor to intervene in the first place.

Rick Wilkinson, CEO, at energy advisory firm EnergyQuest, said their analysis shows just 6 per cent of the total market is covered by all requirements within the code of conduct.

“With all the exemptions it’s reasonable to ask how much gas is actually subject to the price cap? The answer is not much right now – we estimate it at approx. 6 per cent of total east coast production – which includes LNG – but a more material 21 per cent of domestic supply. The reach is likely to grow in coming years,” he said.