23-08-00 Australia's oil and gas industry has given the Federal Government a major thumbs up after it cleared one of the biggest hurdles fronting the expansion of the country's multi billion dollar LNG industry. Leading LNG producer Woodside Energy and oil and gas lobby group APPEA both welcomed the Government's decision that it will not allow greenhouse policy to affect the competitiveness of Australia's LNG industry.
Woodside, which is expected to announce the go-ahead for a new LNG train within weeks, said the announcement made by Senator Nick Minchin was good news for one of Australia's biggest export earners. "We welcome the Government's decision," said Dr. Chris Haynes of Woodside. "By increasing Australia's LNG exports we can make an even greater contribution to global greenhouse gas abatement."

LNG used in electricity generation produces 30 to 40 % less greenhouse emissions than coal or oil, but almost all other LNG producers are located in developing countries that have not signed on to the Kyoto Protocol. "Investors can now be satisfied that Australian LNG projects will not be made uncompetitive as a result of greenhouse abatement costs incurred in Australia that are not borne by our overseas competitors," Dr. Haynes said.
By reducing the uncertainty attached to greenhouse policy, Dr. Haynes said Australia's LNG industry will be better placed to compete for new multi billion dollar LNG contracts in the highly competitive Asian LNG market. He said the government "should be congratulated" for its foresight.
APPEA echoed Woodside's sentiments, and added that the local LNG industry had backed the Government's approach to greenhouse policy implementation. Australia has upwards of $ 40 bn worth of new LNG developments on the cards, and the uncertainty over Federal greenhouse policy is considered a major reason why many of those developments had stayed on the table.