Squadron Energy plays down APA gas pipeline threat to its LNG...

Squadron Energy plays down APA gas pipeline threat to its LNG import plans

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By Daniel Mercer

Rob Wheals, the chief executive of Squadron Energy, rejected APA's criticism of LNG imports.

Mr Wheals said suggestions imports would push up the price of gas in Australia were based on flawed assumptions.

Pointedly, he said they ignored the likelihood of a global gas glut in the coming years as huge volumes of extra supply came online from exporting giants led by Qatar and the US.

"Claims that LNG imports will drive up the price of domestic gas are wrong," Mr Wheals said.

"Multiple independent analysts including Bloomberg, EnergyQuest and Wood Mackenzie have forecast a global LNG oversupply in the coming years, driving prices down.

"Our Port Kembla Energy Terminal is the only solution ready in time with enough capacity to prevent future gas shortages and price spikes, and no pipeline expansion will be large enough or ready in time to address this crisis.

"PKET will unlock access to cheaper global LNG supplies, allowing NSW and Victoria to secure lower-cost gas during northern hemisphere summers (our winter) when prices are at their lowest.

"What would be truly disastrous is failing to act now, locking Australia into a supply crunch and leaving households and businesses exposed to higher prices and shortages during winter peaks."