Business

Aluminium body hits out at LNG industry due to "thin" market

An aerial view of Queensland Alumina Limited in Gladstone.
An aerial view of Queensland Alumina Limited in Gladstone. Brenda Strong

AUSTRALIA'S peak body for aluminium production has hit out at the LNG industry, saying developments are serving international interests at the expense of the Australian market.

Miles Prosser, executive director at the Australian Aluminium Council, has claimed local gas buyers, such as alumina and aluminium producers, are the victims of "a thin and shallow market."

That's despite a promising future for LNG, underpinned by over $200 billion worth of LNG developments across Australia, including three on Curtis Island in Gladstone harbour.

Gladstone is also home to the world's largest alumina refinery, QAL, and across QAL and Rio Tinto Yarwun, nearly 2000 people are employed in the industry.

"Claims that there is plenty of gas available and that the market will find a solution are simply wishful thinking when domestic users struggle to find suppliers in a thin and shallow market," Mr Prosser said.

Australia's alumina and aluminium sectors use over 140 petajoules of gas annually - while Australia produced 2270 petajoules of gas in the 2011-12 financial year.

"The absence of a deep and efficient gas market makes it extremely difficult for domestic industry to secure long-term gas contracts, which is stifling investment decisions," Mr Prosser said.

Last month, a report from the Australia Institute showed tradition industries in the Gladstone region would pay an extra $2.9 billion for gas in the next decade, as LNG export drives up prices.

Topics:  aluminium, curtis island, gladstone, industry, lng, qal



BREAKING: Emergency services at gas leak in Gladstone

Gas leak at Gladstone.

Fire crews are at the scene working to make it safe.

WATCH: Gladstone crabber losing livelihood to thieves

Alan Grayson is furious with the ongoing thefts of crabs and pots in the region.

GLADSTONE crabber warns off fish and pot thieves in Boyne waterways.

Local Partners

Kim Kardashian West wants restraining order against prankster

She was attacked by Vitalii Sediuk for the second time in two years

Cliff Richard to release 101st album

Sir Cliff Richard's album cover

Sir Cliff Richard is to release his 101st album

CMC Rocks faces fan backlash over date change, headliners

The 10th annual CMC Rocks festival will be headlined by The Dixie Chicks.

FANS are not happy about festival being pushed back by two weeks.

Kim Kardashian West attacked by man trying to kiss her bottom

Vitalii Sediuk targeted Gigi Hadid last week

Madonna poses naked in solidarity with Katy Perry

Madonna posted her own nude selfie on Instagram

$40million hotel, shops development project for Mackay

Mt Pleasant hotel and retirement accommodation, proposed at 194-202 Malcomson St.

$40m development to take Mackay to 'the next level'

'Flex muscles': Gladstone suburb drops $120K

BUYERS are scooping unprecedented deals by “flexing their muscles at the table”

Few bright lights for property after mining downturn

The Gladstone Regional Council wants associated LNG companies like Bechtel to be apart of the EIS housing accommodation strategy from the outset of the projects and not mid-way through.

Tannum Sands continues to write its own property success story

Property 200m from ocean selling for just over $100K

BEACHCOMBER PARK: Work has started on a new $19.2 million development at Toogoom.

The estate's developer is offering huge discounts for early buyers.

UPDATE: Former rodeo champ's sale rained out, now back on

Larkhill local Ken Consiglio is having an auction of most of the things on his property.

'People kept showing up and we had to turn them away'

Market opens as Gladstone sellers drop prices to force sale

VENDORS are dropping the price on houses to force a sale.