Sep 5, 2014

Cooking with gas: LNG pipeline proposed to supply east coast

APA wants to build a billion-dollar pipeline to connect the gas supply in the Northern Territory with the east coast. And that might not be such a bad idea ...

Paddy Manning

Crikey business editor

On the face of it, a billion-dollar gas pipeline linking the Northern Territory to the east coast makes a lot of sense. It will put paid to arguments about a looming gas supply shortfall and ease pressure for rapid development of contentious coal seam gas (CSG) fields in Queensland, New South Wales and Victoria.

Australia is in the middle of a remarkable $200 billion-plus liquefied natural gas (LNG) boom, and will soon leapfrog Qatar to become the world’s largest exporter. To have created such a massive, dependable source of national income within five years is, overall, a good thing — especially if the coal market slump proves permanent.

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13 thoughts on “Cooking with gas: LNG pipeline proposed to supply east coast

  1. Mali Edon

    I always find it remarkable that Australia does so little in terms of strategic planning, whether for energy, critical industries, critical infrastructure, next generation employment, future living standards, …

    Perhaps it is all too hard to think about and we should leave our future to the tax-oriented decisions of multi-nationals.

  2. Dogs breakfast

    I think Michael West(?) of SMH beeled the cat on this one last weekend.

    An industry with demand not rising as expected, unwilling to impart information to governments, looking for the public purse to build the infrastructure so that they can walk off with the profits.

    I wonder how much of this brilliant resource gold mine will actually end up in Australian coffers.

    It looks like more corporate welfare for the biggest end of town, the multi-national resources sector.

    The policy of holding off a percentage of gas supplies for local use needs to be considered. Paying export prices seems to just send our resource wealth offshore to non-tax paying corporates.

    I doubt that OPEC countries are paying export prices for their own oil.

  3. paddy

    I guess mentioning the words “fossil fuel” would be like farting in church.

    Not as smelly as coal perhaps… But ,combined with all those embarrassing methane emissions, still a bit whiffy.

  4. Duncan Gilbey

    Wasn’t Rex Conner ridden out of town on a rail for suggesting something like this about 40 years ago?

  5. Matt Hardin

    I was reminded of the same thing, Duncan.

    Also, Government funding for the pipeline? Talk about subsidies for energy industries? Over to you Tamas Calderwood after your comment earlier this week on subsidies for renewables!

  6. Professor Tournesol

    Yeah, great idea, lets increase our greenhouse gas emissions even more, there’s a quick buck to be made.

  7. Professor Tournesol

    Mali Edon, we don’t need ‘strategic planning’, these days its known as ‘Government picking winners’ and its apparently a bad thing. Instead we have this wonderful thing called ‘the market’ that makes all decisions for us based on political lobbying and maximising profits and that’s apparently a good thing. At least it is of you are part of the 1%

  8. Gavin Moodie

    How would reserving gas for domestic consumption ‘fix’ any problem? Reservation seems to me a subsidy for inefficient and environmentally damaging consumption.

  9. David Hand

    It’s great to see all these warriors for the environment opposing everything anyone comes up with to supply the southeast with the energy it needs. No NSW produced gas because Fracking will cause all the water to disappear. No piping it from NT. It’s dirty and polluting anyway.

    Here’s an idea, line up an array of cycles made of hemp at the local Balmain and Fitzroy craft markets where people can do their bit for the community by peddling for an hour or so.

    Of course someone needs to invent a hemp bicycle but hey! Necessity is the mother of invention. After all, we can’t use evil and dirty steel can we?

  10. Professor Tournesol

    David Hand, here’s another idea, try to imagine that it is possible to care for the future and for the environment without either wholeheartedly embracing unfettered fossil fuel use or being a hemp wearing feral hippie using candles for lighting. There are many other alternatives you might wish to consider.

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