Santos chief executive Kevin Gallagher.
Santos chief executive Kevin Gallagher.

Santos hits out at gas 'crisis'

ALL THREE Curtis Island LNG plants have been in the spotlight because of gas demand issues but none more so than Santos.

During a speech at the American Chamber of Commerce managing director and CEO Kevin Gallagher hit out at the proposed regulations and claims.

"Gas prices have increased because all the cheap gas has been developed, so it is costing more to get gas out of the ground and we need the scale of LNG projects to make the new unconventional gas commercial," he said.

"This therefore is a pricing problem, not a gas shortage problem."

Mr Gallagher said this fact had been confirmed by the Australian Energy Market Operator.

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He hit out at the government, saying their decision to intervene had distracted attention away from the underlying causes of the problem.

"We are being asked to believe that high prices and shortages in supply are the fault of the LNG exporters whilst at the same time state and territory governments have either banned or restricted gas exploration and production," he said.

Mr Gallagher said today's situation was a national issue that required Federal and State Governments to develop a National Energy Plan.

"That plan needs to address the production of gas for domestic consumption and export," he said.

"It also needs to address structural issues regarding the transport of gas to market. To that end we support the push by the Finkel Report for a national strategic energy plan to ensure the reliable supply of electricity."



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