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Morrison has no power on gas prices - but he could help Australians with energy bills

Media Release
Nick McKim 22 Jan 2021

The Greens have attacked the Prime Minister’s attempted spin on domestic gas reservation, pointing out that it will have no impact on Australian consumers.

AEMO estimates that gas resources from new basins (such as Narrabri and the Beetaloo) will likely cost between $7.28-$9.87 per GJ to extract. When you consider that gas companies aren’t going to sell at a loss, Scott Morrison’s goal to keep new gas for Australian industry below $6 per GJ is clearly absurd.

“At the end of the day, we have companies who want to sell gas and they’re not stupid enough to sign a deal to sell it for less than the market price. Morrison’s grand announcement is a farce,” Greens acting leader, Nick McKim said.

“This is also why claims that opening new gas mines will lower prices are false - Australia is now linked to the international market, and that is where the price will be set.

“The era of cheap gas in Australia ended when a Labor Energy Minister, who later became a gas lobbyist, successfully fought to connect us to the international market.

“Even a domestic reservation on new fields would fail to deliver cheap gas, as not only are new gas basins in places like Narrabri and the Beetaloo climate bombs, they are expensive to boot.

“If Scott Morrison wants to lower the energy bills for Australians, he should be taking advantage of Australia’s abundant renewable potential and support industry and households to electrify while making a rapid transition to wind and solar, backed by batteries,” McKim said.

 
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