Gas users back reservation scheme big east coast gas users have...

Gas users back reservation scheme
big east coast gas users have backed the Morrison government’s decision to move ahead with a domestic gas reservation scheme but remain concerned whether any policy will offer short-term relief.Resources Minister Keith Pitt on Tuesday kicked off the process of implementing a national gas reservation system, seeking input from state governments, gas companies and energy users before a “final decision is made” by June next year.Incitec Pivot, which has been calling for more affordable deals for big gas buyers, said the industry still needed lower prices and more supply in the short-term.“Gas reservation is a long-term solution, however we will still need short-term actions to ensure domestic consumers and manufacturers get a fair deal on access and globally competitive prices,” Incitec chief executive Jeanne Johns said.“The privilege of exporting gas should also require meeting domestic needs at a globally competitive price.”Incitec said a move to replicate West Australia’s reservation scheme could deliver results for east coast users.“WA has a gas reservation policy. Its policy has continued to support a strong manufacturing industry and WA’s gas prices are a third lower than east coast gas.”Orica said it wants to see more competition and new entrants in the domestic gas market.“It’s important to remember why this paper and consultation are so important. Australia is the only major gas-producing country which doesn’t ensure adequate supply at competitive prices for its own domestic market,” Orica chief executive Alberto Calderon said.“We hope that a reservation measure may also encourage new entrants into the market and improve competition among suppliers, because at present, almost 80 per cent of all existing proved and probable fields are controlled by the LNG exporters.”