Stability vital for #LNG projects
Uncertainty about Federal Government policies could put billions of dollars worth of liquefied natural gas (LNG) projects at risk, Adelaide Now reported.
Santos chief executive David Knox, speaking as chairman of the Australian Petroleum Production and Exploration Association (APPEA) at its 2012 annual conference in Adelaide, said policy stability was critical for LNG projects, which were long-term investments.
There are currently three LNG projects in production in Australia, with another seven, worth a cumulative $170 billion, under construction across the nation.
"And there are strong opportunities for further investment in Australia’s oil and gas industry, including additional LNG projects," Mr Knox said.
But while there was confidence in the resources sector, "this confidence is easily undermined by the combination of continuing and significant policy changes”.
"Even if those changes do not come to fruition it is this ongoing discussion of further changes which is undermining confidence,” Mr Knox said.
"Governments must recognise what we all know… that investment in oil and gas is not a short-term game, but one based on a long-term outlook with returns over the long-term.
"With such massive capital investment and therefore risk up-front, long-term investors like those in the oil and gas industry need stable, predictable, long-term rules.
"My clear message to the Australian Government is: do not create uncertainty.
"Instead provide our investors with the confidence in Australia as a stable fiscal and regulatory region – allow us to stay competitive.”
Read the full article here.
The LNG Outlook Australasia conference will be happening on the 19-21 November 2012. It will discuss investment and development for LNG producers, buyers and investors. For more information, click here.