Article by Valerina Changarathil courtesy of the Gold Coast Bulletin.
RECRUITMENT for more than 370 jobs, new investment and future contracts related to Queensland’s $1bn Atlas expansion project – aimed at boosting east coast supplies – will be put on ice until the outcome of the Albanese government’s consultation on its new gas price cap rules.
Senex Energy, which is jointly owned by South Korean giant POSCO International and Gina Rinehart ’s Hancock group, announced the decision on its website, in response to the passing of the energy price relief bill earlier this month.
New laws passed by the Albanese government “that could arbitrarily dictate investment returns” for gas producers puts its investment at risk and would result in less gas, electricity shortages, fewer jobs and weaker regional communities that rely on the resources sector, Senex warned.
“This legislation has the potential to choke gas supply into the east coast market and put at risk the essential role that natural gas will play in the energy transition to enable reliable electricity supply for homes and businesses,” said Senex chief executive Ian Davies.
“Until we know the scope of future government actions under the yet-to-be-developed Code of Conduct, and the potential for retrospective application of measures, including the breaking of agreed contracts, it is prudent to review all investment. “Price controls drive up demand however do nothing to increase supply.” PM Anthony Albanese and Energy Minister Chris Bowen have rejected concerns that a one-year $12-a-gigajoule cap on gas and $125-a-tonne cap on coal would trigger an investment drain and supply gaps.
