Gas Security For Wa Critical: Alcoa Md

Gas security for WA critical: Alcoa MD

Australia must get the balance right between expanding and maximising LNG exports while ensuring the country's own domestic needs, according to Alcoa of Australia Managing Director Alan Cransberg.

Speaking at the 9th Energy in WA Conference in Perth yesterday, Mr Cransberg expressed his concern for energy security and gas availability for the domestic market in Western Australia, saying it is an issue effecting households, businesses and future generations.

"It's vital for Australia to develop a national energy security strategy for the next 50 to 100 years, to ensure a vibrant domestic gas industry coexists alongside a vibrant LNG industry, and to ensure a secure domestic supply in a competitive market place."

Mr Cransberg said three things needed to occur to achieve a secure supply in a competitive market.

"First, we need to bring new supplies of gas into the market. We've got to find ways to reduce barriers to market entry and to facilitate new players - and we need to look at current regulations around exploration.

"Second, we need to ensure independence of selling arrangements for future gas projects - there are multiple buyers in today's mature market and they need more choice.

"As new projects develop, there is a great opportunity for some of the world's largest oil and gas producers to compete for serious business in Western Australia, just as they do in countries all around the world."

"The third criteria for creating a secure supply in a competitive domestic market, is for the Government to implement policies to ensure we have sufficient available gas for domestic use.

"This is complex but critical to enable competitive businesses to thrive and grow right here at home, to ensure households are well serviced, alongside a robust LNG industry.

"There is no doubt that LNG exports have a wonderful benefit to the WA community, but the community also benefits from local industries, and our local industries need diversity of supply, and to operate in an environment of competitive selling.

"And let's not forget, gas is a great clean transitional fuel, an important piece in the greenhouse challenge while we pave our way to renewables," he said.

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Media contact: Michaela Southby 0400 127 427

For full speech visit: www.alcoa.com.au/cransbergsays

For more on Alcoa and energy visit: www.alcoa.com.au/energy

SOURCE: Alcoa of Australia