APPEA digs into Alcoa

A petroleum industry body has accused Alcoa of confusing energy security with the supply of natural gas into their commercial activities, after comments the company made at an event today.

The announcement is below:

The Australian Petroleum Production and Exploration Association (APPEA) note the suggested interest in energy security expressed by Alcoa today at the Dampier to Bunbury Natural Gas Pipeline (DBNGP) anniversary event in Perth.

APPEA WA Director Tom Baddeley said energy security is an issue of importance to all Australians. Unfortunately it seems that Alcoa is confusing energy security with the supply of an input into their commercial activities.

"If Alcoa are genuinely concerned about the long term supply of natural gas, they should join APPEA in advocating policies that can improve the ability of gas producers to commercialise discovered resources," said Mr Baddeley.

Australia has significant gas resources, with a large proportion being located offshore and onshore in Western Australia. Latest estimates indicate that based on current levels of projection, we have well over 100 years of gas in place.

This does not include the quantities that we are optimistic will result from future discoveries which Australia's oil and gas industry is activity spending billions of dollars a year on in exploration.

Improving key aspects of Australia's policy framework can assist our industry to explore for, discover and produce more natural gas.

"Alcoa, a large industrial buyer of gas, seems more concerned about the short term availability of natural gas supplies and the associated contractual provisions that suit their corporate position. To confuse this with energy security, which covers the full range of issues associated with our nation's energy future, is disappointing," said Mr Baddeley.

Mr Baddeley said that Alcoa have no basis for concern on this point, new projects currently under construction and committed to construction will increase our strong domestic supplies even further.

"The reality is that the long term challenge may be for demand to keep up with supply, Alcoa can play an important role in meeting that challenge," said Mr Baddeley.