SA: Minister urges gas sector to get moving

AAP General News (Australia)
04-16-2007
SA: Minister urges gas sector to get moving

ADELAIDE, April 16 AAP - Federal Industry Minister Ian Macfarlane has urged the gas
sector to get moving on major projects or face the prospect of their international customers
going elsewhere.

Mr Macfarlane said the federal government would consider the industry's call for further
tax breaks to help turn gas projects into reality.

But the minister said the sector already had plenty of incentive to invest in new ventures,
considering the high world prices for oil and gas.

"My point to them is there is a major competitor to oil and gas in the production of
electricity and that is nuclear power," Mr Macfarlane said after his address to the Australian
Petroleum Production and Exploration Association (APPEA) conference.

"Our customers overseas who receive gas from us currently and who are considering receiving
gas are also nuclear powered countries.

"If the gas industry doesn't get down and go hard they may find our customers leapfrog
gas and go straight to the one true baseload zero-emission technology and that is nuclear."

Mr Macfarlane said while Australia would be happy to sell those countries more uranium
for their nuclear power stations, the local gas industry also needed to ensure it developed
its projects quickly to optimise the high gas prices around the Pacific rim.

The minister's comments followed the release of a strategic plan from the oil and gas
industry which included calls for tax breaks and other initiatives to help the sector
overcome challenges including declining local oil production and the escalating global
energy demand.

APPEA chairman Colin Beckett said the introduction of a five-year capital depreciation
regime was the single policy measure capable of shifting large gas projects from the drawing
board to construction.

AAP tjd/cjh/mn

KEYWORD: PETROLEUM MACFARLANE

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