Santos confirms gas-fired recovery is all about exports

The Australasian Centre for Corporate Responsibility​ (ACCR) is responding to remarks from Santos’ Strategic Adviser External Affairs, Tracey Winters, at the Senate inquiry into oil and gas exploration and production in the Beetaloo Basin.

Tracey Winters said: “The reality is the scale of investment required in the Beetaloo can’t be supported by the domestic market in Australia alone.”

Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“At long last, the truth behind the gas-fired recovery has been revealed.

“The Federal government has long claimed that the gas-fired recovery was about meeting a supposed shortfall in domestic supply.

“Taxpayer subsidies are being used to prop up dud investments by gas companies, plain and simple.

“More than a billion dollars of taxpayer’s money has been thrown at developing new gas basins for the benefit of a handful of gas companies - most of whom have made political donations (Origin and Santos).

“The reality is that the development of the Beetaloo Basin, and other new basins, is entirely about supplying LNG export terminals.

“APPEA, Origin Energy and Santos have lobbied the Federal government for more than two years for government support to develop new gas basins, which would otherwise be uneconomic.

“Origin and Santos’ LNG terminals at Gladstone and Darwin will likely run out of gas later this decade or early next decade. Without more gas, they could become stranded before the end of their economic lives.

“These subsidies are contradictory to the so-called free market this government claims to defend. The general public and Origin and Santos shareholders should be appalled.”

Background

In March 2021, AEMO Gas Statement of Opportunities found that future gas field developments would be needed to feed Gladstone LNG export terminals.

ACCR published a report on APPEA’s advocacy relating to the gas-fired recovery in 2021.