From today's AFR - meo and potential ts jv partner not the only...

From today's AFR - meo and potential ts jv partner not the only ones lobbying government over discovered resources not being developed.  things are heating up and the ducks are lining up...

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• Nov 16 2015 at 8:00 AM
• Updated Nov 16 2015 at 11:40 AM

Fortescue backs Frydenberg on gas lease reformS
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Fortescue Metals' Nev Power has found a potential ally on gas retention leases in Josh Frydenberg. Philip Gostelow
by Angela Macdonald-Smith
Fortescue Metal Group chief executive Nev Power is backing a push by federal Resources and Energy Minister Josh Frydenberg to examine a potential toughening of the "use it or lose it" policy on undeveloped gas resources, and declares the iron ore producer would be prepared to invest in gas supply "if needed to make it happen".
Mr Frydenberg told Fairfax Media that "use it or lose it" was "one of the areas I am interested in" as he considered policy issues for attention, particularly after smaller explorers raised concerns with him on his trip to Western Australia two weeks ago.
"I'm getting further briefings on this but obviously that is an important principle that I'm looking at further," he said.
Mr Power has spoken out several times over the years to criticise Australia's system of retention leases, which allowed petroleum companies to retain title over discovered resources for a period of time without developing them.

Writing in The Australian Financial Review in October, he said the system "lacks transparency and competition", and said it was "high time" that the "use it or lose it" rules that apply in mining are transparently applied in upstream gas.
The petroleum industry argues that toughening up the system would put certainty of tenure at risk for what are long-term gas supply projects.
Fortescue, a large gas user in Western Australia, has in the past signalled it would consider investing in upstream gas, and was last year seen as one of the early interested parties in the sale of Apache's domestic gas interests in Western Australia.
Fellow WA gas user Wesfarmers later emerged as an investor in Quadrant Energy, the company backed by Macquarie Capital and Brookfield Infrastructure which acquired Apache's assets.


SIDELINE SUPPORTER

Mr Power said Fortescue was "a strong supporter from the sidelines" of Quadrant, whose focus is on gas supply to WA users. He said the company would still however consider investing in gas production projects.
"We think there are plenty of other people that could develop those resources but certainly we'd be involved if we needed to, to make it happen," Mr Power said.
He said that Mr Frydenberg, who is also Minister for Northern Australia, "shares a passion that we should be unlocking the enormous energy advantage that we have in Australia" and said he had spoken to the minister on the topic, and on how access to cheaper gas in WA could unlock the potential of new industries.

"Josh was a very sympathetic ear to that and I know shares that passion to make sure that we take full advantage of those opportunities in Australia," he said.
Mr Power said it was a question of "being fair and giving everyone that opportunity" to access the gas resources. "If you're not prepared to develop, then stand aside and let someone else do it," he said, noting that access to low-cost supplies, as are available in the US, would give a competitive boost to agriculture and other industries, as well as to mining.


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