Queensland facing critical gas shortage: new Domgas submission

A new submission from the Domgas Alliance to the Queensland government has warned that the state could be facing further skyrocketing gas prices in the near future if action is not taken.

The 2012 Gas Market Review, released this month, has warned that the gas market has failed in Queensland and that a domestic gas reservation policy was urgently required in order to curb the potential impact of gas shortages.

"To date, no gas field has been set aside for domestic gas development despite the state’s worsening gas shortage," said DomGas Alliance chairman Tony Petersen in a press release issued July 23.

"Even if the policy was activated now and a suitable gas field identified, it could take up to 7 years before gas could begin to flow to local industry and households."

Domgas, formed in 2006, is a coalition of natural gas users, infrastructure investors and producers which formed with the aim of promoting security, affordability and diversity of gas supply to Australians.

According to the Domgas submission, had a reservation policy of 15 per cent been implemented in 2007 it could have been enough to drastically reduce the recent gas price hikes that have affected many Queensland residents. 

"A reservation policy would ensure domestic gas is available to local industry and households at the same time that gas is being exported," added Mr Petersen.

Posted by Callum Fleming