Nick Xenophon (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

I move:

That the Senate—

(a) notes that:

  (i) Australia is a country with significant gas resources (conventional natural gas and unconventional gas, including coal seam gas, shale gas and tight gas) estimated by Geoscience Australia to be in the order of 279,819 petajoules (equivalent to around 106 years of gas at current production rates, of which the gas reserves account for 47 years),

  (ii) Australian energy consumers are entitled to reliable, efficient and long-term gas supply on fair and reasonable terms,

  (iii) many Australian energy consumers are paying more for gas per unit than Australian gas is being sold for overseas,

  (iv) many countries have mechanisms in place that ensure their domestic energy consumers have reliable, efficient and long-term gas supply on fair and reasonable terms, including:

(A) mandatory percentages of extracted gas being reserved for domestic use,

(B) reserves secured through state-owned gas supply companies, and

(C) a public interest test prior to the grant of export approval, and

  (v) Western Australia requires commitments from gas producers for the equivalent of 15 per cent of gas from new offshore developments to be available for domestic use; and

(b) calls on the Government to introduce a public interest test for gas producers which has regard to, amongst other things, reliable, efficient and long-term domestic gas supply to Australian energy consumers on fair and reasonable terms.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Leave is granted for one minute.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

On 15 March 2017, the Prime Minister held a meeting with the leading gas producers in Australia. A series of measures were agreed that will guarantee gas availability during peak demand in the National Electricity Market, make more gas available to the domestic market, increase gas market transparency, increase community confidence in gas development and accelerate the COAG Energy Council's gas market reforms. These reforms will improve pipeline capacity and gas trading markets. Further reforms to improve the gas market will be urgently considered. The government is establishing a task force that will manage implementation of these measures and report to the cabinet energy committee. The task force has received a commitment from the industry to ensure that the domestic market has the gas supply it needs. If necessary, the government will not shirk from using the considerable powers of the Commonwealth under the Constitution to ensure this occurs.

Question agreed to.