Australia Commits $45 Million to Boost Gas Supply
MELBOURNE (Reuters) — The Australian government said on Friday it will commit A$58.6 million ($45.3 million) to boost gas supply, storage and pipeline capacity in its 2021-22 budget, due to be unveiled on Tuesday.
The spending fits with the government's push for a gas-fired economic recovery from the COVID-19 pandemic slump, aiming to boost gas supply, drive down prices for manufacturers and avert a looming shortfall in the country's southern states.
"The government will not sit back and allow the shortfall to eventuate – the risk to the economy is too great," Energy Minister Angus Taylor said in a statement.
The projects the government will back in the budget include a gas-fired power station proposed by mining billionaire Andrew Forrest, tied to a gas import terminal that his privately owned Squadron Energy plans to build in the state of New South Wales.
Squadron's Port Kembla LNG import terminal is the most advanced project among five LNG import terminals proposed to help fill a looming gas shortfall in Australia's southern states.
Other measures to win support include two gas storage projects in the state of Victoria and an expansion of the South West Victorian gas pipeline.
The funding is designed to help the projects reach final investment decisions more quickly so they can be built in time to address potential gas shortages.
"Without action to address supply, industry and households will be faced with higher prices, disruptions in supply and unplanned outages," Taylor said.
Related News
Related News

- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments