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You can find the current article at its original source at https://www.theguardian.com/australia-news/2017/mar/10/malcolm-turnbull-leaves-open-reserving-gas-supplies-for-domestic-industry
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| Malcolm Turnbull leaves open reserving gas supplies for domestic industry | Malcolm Turnbull leaves open reserving gas supplies for domestic industry |
| (35 minutes later) | |
| Malcolm Turnbull has refused to rule out reserving gas for domestic industry, saying the government will consider “all measures” to ensure energy security. | Malcolm Turnbull has refused to rule out reserving gas for domestic industry, saying the government will consider “all measures” to ensure energy security. |
| In an interview on Adelaide’s 5AA radio on Friday, Turnbull used the threat of a reservation policy to put gas suppliers “on notice” that they had to secure supply for their customers. | In an interview on Adelaide’s 5AA radio on Friday, Turnbull used the threat of a reservation policy to put gas suppliers “on notice” that they had to secure supply for their customers. |
| The comments contrast with statements by the resources minister, Matt Canavan, that gas reservation would not deliver “a very good outcome” because rationing did not work in other markets. | The comments contrast with statements by the resources minister, Matt Canavan, that gas reservation would not deliver “a very good outcome” because rationing did not work in other markets. |
| The Australian Workers Union has long called for reservation of gas because it would reduce power prices for industrial consumers, and Bill Shorten has called on the government to convene an emergency meeting to consider a national interest test for gas or a form of reservation policy. | |
| Last week Nationals MP Andrew Broad told Guardian Australia the government should consider reserving 15% of gas supplies rather than exporting them. | |
| Asked about the proposal for gas reservation on Friday, Turnbull said: “We will consider all measures that we need to to ensure that our energy security is assured.” | Asked about the proposal for gas reservation on Friday, Turnbull said: “We will consider all measures that we need to to ensure that our energy security is assured.” |
| Turnbull said he would meet the chief executives of east coast gas companies next week. | Turnbull said he would meet the chief executives of east coast gas companies next week. |
| “They’ve been put on notice. I need to hear from them; I will be demanding from them their explanation [on] how they will deliver security for their customers.” | “They’ve been put on notice. I need to hear from them; I will be demanding from them their explanation [on] how they will deliver security for their customers.” |
| Asked specifically about Western Australia’s policy of reserving 15% of gas for domestic use, Turnbull said WA had imposed the requirement on licence conditions from the outset. | Asked specifically about Western Australia’s policy of reserving 15% of gas for domestic use, Turnbull said WA had imposed the requirement on licence conditions from the outset. |
| “What the gas companies would say to imposing reservation on them would be: ‘You’re changing the ground rules, we did this exploration, we built the LNG trains on the basis there would not be a constraint on what we could export.’ | “What the gas companies would say to imposing reservation on them would be: ‘You’re changing the ground rules, we did this exploration, we built the LNG trains on the basis there would not be a constraint on what we could export.’ |
| “But clearly [energy] security is the first responsibility of every government.” | “But clearly [energy] security is the first responsibility of every government.” |
| The comments suggest that if gas reservation were adopted Turnbull would favour making quotas a condition on new gas production operations, not imposing them on existing projects. | The comments suggest that if gas reservation were adopted Turnbull would favour making quotas a condition on new gas production operations, not imposing them on existing projects. |
| The energy minister, Josh Frydenberg, has ruled out a blanket gas reservation policy but praised the Queensland government’s move to reserve a specific area for development for domestic supply only. | The energy minister, Josh Frydenberg, has ruled out a blanket gas reservation policy but praised the Queensland government’s move to reserve a specific area for development for domestic supply only. |
| Exports of liquid natural gas have caused Australian prices to rise to international levels and restricted supply to domestic consumers. | Exports of liquid natural gas have caused Australian prices to rise to international levels and restricted supply to domestic consumers. |
| On Thursday the Australian Energy Market Operator predicted that New South Wales, Victoria and South Australia would face gas shortages from the summer of 2018-19. It said the tight domestic gas market would have flow-on effects, including rising electricity prices, that could threaten the financial viability of commercial and industrial businesses. | On Thursday the Australian Energy Market Operator predicted that New South Wales, Victoria and South Australia would face gas shortages from the summer of 2018-19. It said the tight domestic gas market would have flow-on effects, including rising electricity prices, that could threaten the financial viability of commercial and industrial businesses. |
| Turnbull repeatedly attacked the South Australian Labor government for investing in renewables without backup plans, including energy storage and more baseload power. | Turnbull repeatedly attacked the South Australian Labor government for investing in renewables without backup plans, including energy storage and more baseload power. |
| AGL Energy has said the main cause of unreliable energy supply in South Australia is “dysfunction” in the gas market – not too many windfarms. | AGL Energy has said the main cause of unreliable energy supply in South Australia is “dysfunction” in the gas market – not too many windfarms. |
| Turnbull blamed state Labor governments for gas supply issues, particularly Victoria’s moratorium on exploration for conventional and unconventional gas. He encouraged all parties, including the South Australian Liberals, who oppose fracking in some areas, to support the development of gas resources. | Turnbull blamed state Labor governments for gas supply issues, particularly Victoria’s moratorium on exploration for conventional and unconventional gas. He encouraged all parties, including the South Australian Liberals, who oppose fracking in some areas, to support the development of gas resources. |
| On Friday the treasurer, Scott Morrison, and the finance minister, Mathias Cormann, both blamed gas moratoriums for shortages in supply. | On Friday the treasurer, Scott Morrison, and the finance minister, Mathias Cormann, both blamed gas moratoriums for shortages in supply. |