Orica boss warns Future Gas Strategy leaves local manufacturing at risk without guaranteed lower prices

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Future Gas Strategy,Federal Government,Madeleine King

The boss of Orica, a major explosives manufacturer that relies on gas, says the federal government's gas strategy won't assist what remains of Australia's manufacturing industry unless it caps prices at globally competitive levels.

Orica CEO Sanjeev Gandhi says higher gas prices are resulting in a less competitive manufacturing industry that isn't addressed by the government's future gas policy.

The plan reveals the government's intentions to speed up gas projects to prevent energy supply shortages, stating that new gas sources are needed to help Australia's energy transition process. "We, at Orica at our Yarwun site in Queensland, just signed a contact for $12. Now, to put it in perspective, I have manufacturing in North America where I can get an equivalent of less than $4 gas.

"Once you have that, you can then start talking about future manufacturing, because we enable that. But if you do not protect your present, the future is at risk.

"They've taken a massive backward step saying that gas is going to play a strategic transition role for the long term for Australia and for Australia's trade partners." Mr Buckley said it was unlikely that Australia will get to net zero with gas in the mix until 2050, and said gas was not currently playing a "major role" in the economy given 80 to 90 per cent of it is exported."East Coast Australia has seen an energy cost-of-living crisis in the last two years because the price of methane gas went up 1,000 per cent. They are not part of the solution. They are the core problem.

Josh Burns, the federal member for Macnamara in inner Melbourne, said the government's decision was at odds with his electorate's expectations.

Future Gas Strategy Federal Government Madeleine King Orica Sanjeev Gandhi Labor Tim Buckley Net Zero Emissions Lng Climate Change Woodside Energy Transition Josh Burns

 

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