Aust slow on US gas boom: Shell4 hours ago2 Politics Industries...

Aust slow on US gas boom: Shell
4 hours ago2

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Royal Dutch Shell global chief executive Peter Voser has held meetings with Prime Minister Julia Gillard and Coalition leader Tony Abbott to express his concerns that Australia has been slow to respond to the impact of the United States' shale gas boom, according to The Australian Financial Review.

Mr Voser said Shell is committed to investing in Australia, but warned that “we need clearly a competitive landscape” before it can commit to further spending in Australia's high-cost energy sector.


“From where I sit I would say that the improvements have been slower than anticipated given that the situation on gas has changed considerably over the last two or three years with the shale gas revolution and new gas resources being found,” Mr Voser told the AFR.

“So I would have expected the Australian government but also Australia has a whole to react somewhat faster to these challenges so that our projects can be sanctioned in the near future.”

Mr Voser's concerns illustrate the link between Australia's response to the US shale gas boom and Shell's ability to secure investment approval for its massive liquefied natural gas (LNG) projects, such as the $20 billion Arrow LNG venture in Queensland.

He added that he is surprised Australia has not made a stronger effort to address its high cost environment to better compete against growing overseas gas rivals, according to the AFR.
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