AUSTRALIA is at a crossroad in terms of effectively and efficiently using its energy resources, says Epic Energy CEO Jay Holm.
Natural gas is only supplying 18 percent of the country’s current energy needs.
Mr Holm, whose company owns 3,300 kilometres of pipeline and is currently building the new pipeline in the South West, said for Australia’s industry and resources to compete in the global economy, there needed to be globally competitive energy costs.
“The bottom line is that significant pipeline infrastructure is required to optimise gas supply, market competition and market growth,” he said. “We estimate that another 10,000 kilometres of pipeline at a cost of $6 billion to $8 billion will need to be built over the next 10 to 15 years.”
Significant gas reserves have been discovered and developed primarily offshore in northern and north-western Australia.
The country has an evolving competitive energy market that needs gas to enhance fuel and cost alternatives for the market.
“There are significant power projects on the table needing power growth and specific resource projects that require gas for their viability,” Mr Holm said.
“There is a national commitment to reduce and control greenhouse emissions, an effort that could be greatly enhanced with expanded use of natural gas.
“The dilemma we face is that there are no pipelines connecting these prolific reserves to the markets that need them. There is no national grid to interconnect supply basins or market zones nor access the new gas supply reserves.”
