NSW’s gas supply will increase by 70 petajoules per year, the federal and NSW governments announced on Friday.
The governments signed a $2 billion agreement to allow more gas for domestic use, in return for support to build inter-connectors and non-coal powered generation programs.
Chemistry Australia, the national body representing the $40 billion chemistry industry, has said it welcomes the announcement as recognition from the governments about the impact of the gas crisis on the economy.
The Australian chemistry industry is a significant user of Australian gas, driving more than $286 million of local economic activity for every petajoule of gas it consumes.
However, the body also said that it hopes that the announcement results in critically needed new volumes of affordable gas in NSW and the East Coast gas market, to improve the global competitiveness of Australian industrial gas users.
Chemistry Australia CEO Samantha Read said the issue of affordability was still top-of-mind for industrial and commercial gas users.
“Chemistry Australia and our members recognise that significantly more work needs to be done to ensure increased gas volumes translate directly into more supply of affordable gas to ensure our sector can remain globally competitive,” Read said.
“We support recent findings of the ACCC of what appears to be an unreasonable gap between what consumers are paying and slumping international tariffs.
“Chemistry Australia and its members are keen to work with Federal and State Governments to ensure the goals set out by the National Gas Objective are realised and that all Australians are able to benefit from a competitive and transparent gas market.”