One of Australia’s biggest gas producers has welcomed the Federal Government’s National Gas Infrastructure Plan. 

The National Gas Infrastructure Plan is a proposed taxpayer-funded scheme to build new gas pipelines in Australia. 

Despite the Australian Energy Market Operator (AEMO) showing the role of gas will decline in coming decades, the National Gas Infrastructure Plan (NGIP) was included in the Federal Government’s October 2020 Budget.

Over 80 per cent of Australia’s gas is exported overseas or consumed in the processing of gas for export overseas.

But the energy minister says the Federal Government has come up with a bold new plan - giving money to fossil fuel companies for new gas pipelines and other projects. 

Santos chief executive officer and managing director Kevin Gallagher has welcomed the new money. 

“The best thing the government could do to get gas prices down on the east coast is to remove barriers to investment and promote private investment in new gas supply sources and pipelines through stable energy and fiscal policy,” Mr Gallagher said.

Energy Minister Angus Taylor has also spoken in support of open, transparent markets rather than price ceilings. Santos has welcomed this too.

“When it comes to internationally competitive prices, our Australian customers always pay less for gas than our Asian customers and that is evident from our public ASX reports,” Mr Gallagher said.

“But it is nonsensical that because customers in Louisiana get $4 gas, then so should customers in Sydney.  The cost of gas in various countries will always depend on the cost of supply, just as labour costs in various countries will depend on wage rates in those countries.”

The Santos GLNG joint venture has seen over 700 wells drilled and around $2 billion invested in gas field developments over the past two years. 

This year, the joint venture is expected to invest a further $800 million in more wells and gas development in Queensland’s Surat/Bowen coal seam gas fields.