Manufacturing companies could help ease the looming shortage of domestic gas by embracing early stage investment in gas projects, according to oil and gas major Santos.
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Speaking at a gathering of plastic and chemical manufacturers, Santos' eastern Australia vice president Peter Cleary said more gas would be available now if the manufacturing industry had invested more in the sector over the past decade.
Mr Cleary applauded recent examples where manufacturers have invested in gas explorers' attempts to discover new supply, such as Orica's deal with Strike Energy, Alcoa's partnership with Empire and Buru, and Dow Chemical's arrangement with Lakes Oil in Victoria.
"It takes big bucks to play in this space, but that doesn't mean others can't play. Anyone in this room is welcome to invest in some of the opportunities that Santos is trying to pursue, particularly in New South Wales," he said.
"I would love to have industry as an upstream investor in that because I think it would show a powerful message to both the New South Wales government and the community in New South Wales that it is not just for one company's benefit."
Domestic gas prices are expected to rise over the next five to ten years because the looming increase in LNG exports will force Australian consumers to pay international standard prices.
Manufacturers, who consume large amounts of gas for energy and feedstock in some cases, are concerned that higher gas prices will further endanger their ability to operate profitably in Australia.
The problem may be exacerbated by state government policies in both Victoria and NSW, which prevent most types on onshore gas extraction.
The Australian Workers Union has called for up to 20 per cent of Australian gas production to be put aside for domestic consumption, but Mr Cleary said Santos had already offered to go beyond those levels if allowed to operate in NSW.
"If we are allowed to produce, the first 100 terajoules per day we expect to go straight to the New South Wales market which would meet 25 per cent of that market's requirements," he said.
"What we need is the help to get the NSW public aligned behind the need for development."
Speaking at the same event, Wesfarmers spokesman Ian Hansen said producers of ammonium nitrate would collectively bear an extra cost of $77 million per year for every $1 rise in the domestic gas price.
Wesfarmers produces ammonium nitrate for Rio Tinto and BHP Billiton in Queensland and Western Australia.