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    Minister for Energy and Water Supply
    The Honourable Mark McArdle

    Draft 2012 Qld Gas Market Review released for consultation

    Minister for Energy and Water Supply
    The Honourable Mark McArdle

    Thursday, June 21, 2012

    Draft 2012 Qld Gas Market Review released for consultation

    The 2012 draft annual Queensland Gas Market Review, prepared by the Queensland Gas Market Advisor, has been released for consultation.

    Minister for Energy and Water Supply, Mark McArdle said the draft 2012 review helped identify limits on reserves that could impact on gas supply availability, market development, security of supply and wholesale gas prices.

    Mr McArdle said the review had a strong focus on establishing gas reserves allocations and development rates.

    “As with roads and rail and public hospitals, one of the biggest lessons Queenslanders should learn from the last two decades of Labor is that failing to plan is planning to fail,” he said.

    “Queensland might have a significant competitive advantage and ongoing investment interest in the resources sector, but we cannot afford to take this for granted.”

    Mr McArdle said the role of the Queensland Gas Market Advisor was to look forward and identify problems in the State's emerging LNG industry before they happened.

    The draft review notes balance has not been achieved between large gas demand for export supply and demand for domestic gas supply.

    The review found the lack of access to future gas supply contracting information resulted in the State’s gas reserves remaining in short supply for new domestic supply contracts (before and after 2015), while major industrial customers were unable to resolve future contracting requirements and business plans.

    “This lack of liquidity is contributing to a high level of uncertainty in the market, which is also affected by the uncertainties of domestic and international LNG supplies and future gas prices,” Mr McArdle said.

    The Advisor warned that if the domestic supply situation did not improve over the next 12 months, there could be insufficient time to address a domestic supply constraint for 2015–2020.

    The Advisor also recommended the Queensland Government consider developing a risk management approach for domestic supply and market liquidity in the planning and approval process for development of future new LNG trains.

    The Gas Market Advisor is responsible for facilitating frequent and open dialogue between government and industry, and providing recommendations to government on key gas market issues.

    Consultation on the draft review will close on 13 July 2012.

    The draft 2012 Gas Market Review can be downloaded at

    [ENDS] June 21, 2012

    Contact: Minister’s Office – 3406 7122