Tasmania industry would be hit hard by gas price increase

There are major concerns that natural gas price rises in the next couple of years would hurt Tasmanian manufacturers.

Natural gas is used to many factories’ applications, such as furnaces, boilers and desiccants.

Roger Ingram from retailer Tas Gas has warned that prices for the resource’s scarcity could cause prices to be quadrupled over the next two years.

“That gas price increase is primarily due to the development of coal seam gas in Queensland,” he told the ABC.                                  

Phil Barresi of the Energy Users Association said that the looming price hikes were causing businesses to consider offshoring.

Lobby groups such as the Australian Industry Group and Manufacturing Australia have been warning of the unintended consequences of the coming boom in gas exports, with the latter claiming nearly 200,000 jobs could be lost through a lack ofaccess to affordable gas.

Image: designbuildsource.com.au

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