Gas Prices Affecting Australian Manufacturing

Social, legal and health issues related to air and water toxic pollution in Australia.

Gas Prices Affecting Australian Manufacturing

Postby HVPA_research » Tue Jul 22, 2014 8:16 am

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Here are some comments related to this article ( Captains of the Australian manufacturing industry obviously caved in to CSG lobbyists and forgot about their earlier calls for reservation of some significant gas reserves for domestic use. Basically they are saying: " Frack the country, but not near our executive homes". Let's somebody else to pay the environmental, health and social costs!

WBG Comment: So not only do we have the gas cos realising they need more CSG gas to feed the LNG plants at Gladstone, we have the manufacturers screaming because of gas price increases. Hence both industry sectors are lobbying Govt hard to allow more CSG extraction.

A report released on Monday by the Plastics and Chemicals Industries Association (PACIA) in alliance with five leading Australian industry associations brings to light major impacts on the Australian manufacturing sector from LNG export growth.

The study is the first comprehensive analysis into the impact on industry of the unprecedented changes in Australia’s gas market, PACIA said.

The report titled ‘Gas Market Transformations - Economic Consequences for the Manufacturing Sector’ ( is an independent study undertaken by Deloitte Access Economics. It reveals the implications of forecast Australian domestic gas price increases and supply tightness, and the severe side effects on the Australian economy.

“This analysis fills a major evidence gap. While we have known that prices have been rising, it has not been clear what this will mean for our industry and the broader manufacturing sector,” said PACIA CEO, Samantha Read.

The report forecasts a loss of national manufacturing output of approximately $118 billion by 2021 in net present value terms. Job losses for the same period are forecast to be 14,600.

“The impact on the chemicals and plastics industry is significant, with forecast losses of $13.7 billion in manufacturing output and 4,000 jobs by 2021. This would represent a devastating loss of highly skilled jobs,” said Read.

The projected hit to revenue would be a serious blow to businesses already operating in very challenging business conditions, she said.

“There is no reason for Australia’s natural wealth to be spread so unevenly in the economy, given Australia’s abundant gas reserves. With smart reform and increased supply, Australia can support both strong energy exports and a thriving domestic manufacturing sector that adds value to its natural resources,” Read commented.

The alliance comprises: the Australian Industry Group, the Australian Aluminium Council, the Australian Food and Grocery Council, the Australian Steel Institute, the Energy Users Association of Australia and the Plastics and Chemicals Industries Association.

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