FEDERAL resources minister Madeleine King has hit back at concerns raised in speeches at the Energy Exchange Australia conference in Perth about the future of LNG.

She told the conference on 14 March that commentators who say the government is doing too little to bring on new gas, often conveniently ignoring the robust investment pipeline for new gas developments in Australia.

She said that included a robust investment in pipelines.

Ms King acknowledged the significance of gas to the West Australian economy.

“Western Australia is the engine room of the nation’s economy,” Ms King told the conference.

“Gas has been a significant contributor to this state’s economy since WAPET’s first commercial discoveries of oil on Barrow Island in the early 1960s.

“Discoveries soon after, like the North West Shelf would eventually see WA powering not only Australia’s economy – but economies across the region.

“The steady supply of gas from Western Australia’s north over the decades has powered homes and businesses for many decades.

“As our gas has been sold into more of the major industrialised economies across Asia, it has become a major factor in the unrivalled period of peace and prosperity we have enjoyed in this region.”

Ms King said the federal government’s Future Made in Australia policy put the resources industry at the heart of the plan to build a better future for the nation.

“It’s about helping the world get to net zero.

“It’s about economic sovereignty and national security.

“We’re investing in industries that will have a strong comparative advantage in a net zero global economy, such as green metals.

“We’re investing in industries that provide the domestic capability we need for our economic resilience and security, such as critical minerals processing.

“I’ve been very clear.

“If we are to process more critical minerals and rare earths in Australia we will need gas to do that.

“Gas is vital in firming renewable sources of power.

“Gas is flexible.

“And gas brings the energy intensity needed to produce those high heats used in processing minerals.”

While securing affordable gas for domestic consumers was the bedrock of the government’s strategy, Ms King said it was just as important to get the economy to net zero by 2050 – and the role gas can play in that transition.”

Ms King also addressed offshore oil and gas decommissioning which she said presented an immense economic opportunity for Australia.

“Around $60 billion will be spent over the next 30-50 years plugging and abandoning oil and gas wells and removing associated infrastructure.

“The Australian Government’s priority is to see this is done safely, with minimum environmental impacts.

“The roadmap sets out a path for Australia to maximise the amount of decommissioning activity that happens domestically, growing our industrial capability and creating safe, high-quality jobs for Australians.

“And without taxpayers having to foot the bill.”

Ms King said the Australian Government was forced to take carriage of the Northern Endeavour Floating Production Storage and Offloading in the Timor Sea in late 2021, following the insolvency of the operator.

Progress had been made on the decommissioning and the Northern Endeavour FPSO will be dry-towed for final dismantling and recycling.

“Longer-term, decommissioning cannot be left to governments. My department is leading a process to strengthen our existing financial assurance regime to guarantee that industry decommissioning will always remain the responsibility of industry.

“And to titleholders who are out there not adequately planning for future decommissioning expenses – we are watching closely and I am putting you on notice.

“Decommissioning is and must always remain the responsibility of industry. Taxpayers will never be left to foot the bill.”