National resource
Dow favours the construction of a long-distance pipeline to link up plentiful sources of gas off the north-west coast with east coast buyers.
While doubting the economics of gas piped from Western Australia, Qenos' Mr Bell was also critical of current pricing of domestic fuel.
"Gas belongs to the Australian community and as such it's a strategically national resource and it should be to the benefit of all Australians, not just certain sectors," Mr Bell said.
He voiced fears that the east coast gas price will only surge higher as oil prices increase. Already the effective price at Queensland's Wallumbilla hub has risen to about $14.20/GJ with Brent at $US84 a barrel.
With a $2/GJ of transportation costs to get gas south from Queensland and Brent heading to $US100 a barrel under some forecasts by the year-end, gas prices for users in the southern states could get to $20/GJ.
"How do we deal with that?" Mr Bell asked Senator Canavan.
'No solution' in subsidies
But Senator Canavan said "the reality is that we have a market now that's linked to world oil prices" and also seemed to rule out the possibility of subsidies for manufacturers.
"I don't think the solution to the crisis here is to subsidise in an ongoing and unsustainable way the use of energy in Australia relative to our export opportunities," he said, while encouraging east coast gas producers to think of the future for their customers.
"I do encourage the domestic gas industry to ensure that prices in Australia are reasonable and affordable while still allowing those businesses, of course, to make a profit."
Ms Johns said from all her experience working around the world, Australia "is the exception to the rule" in not prioritising its domestic industry over exports.
"I don't see the sovereign risk by making sure you have enough of your own energy to supply your own energy needs, I would assert it is sovereign risk to actually export that and leave a hole in your energy needs."
CTP Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
