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COAG support for NT gas pipeline a promising development

“COAG support for a new gas pipeline linking the Northern Territory to the East Coast, is a promising development,” said Plastics and Chemicals Industries (PACIA) CEO Samantha Read.

“The industry supports long term investment to secure Australia’s domestic gas supply. We understand that Minister Macfarlane and Northern Territory Chief Minister Adam Giles will be discussing this further on the weekend, and we look forward to hearing the details.

“Ensuring access to natural gas in a transparent and competitive Australian domestic market is vital to a diverse and robust national economy.

“It is crucial that Australia realises its energy advantage. There is significant opportunity for an advanced manufacturing sector, enabled by Australian gas and chemistry, to meet unprecedented global and domestic growth.

“The Australian chemistry industry contributes significant value-add to 10% of all Australian domestic gas, using it as an essential and non-substitutable feedstock. Our industry transforms gas through chemistry into ammonium nitrate used to fertilise our crops, and polyethylene to make water pipes, milk bottles and silage wrap.

“Everyday, Australians open their fridge and take out a bottle of fresh milk. This milk bottle cannot be produced without the natural gas that makes the polyethylene, which is a lightweight and easily recyclable material. Australian farmers, customers and families all depend on reliable supplies of this high quality polymer to safely deliver our milk that is so valuable to our everyday lives.

“It’s important that all Australians understand the value of gas to our economy and to our standard of living,” said Ms Read.

A recent report by Deloitte Access Economics reveals the potential for severe side effects resulting from gas supply tightness and cost increases. The Report projects $118bn in lost output by 2021 to the Australian manufacturing sector alone, based on the current gas price projections and other factors.

“Domestic gas supply is a national issue that requires coordinated leadership. We look forward to continuing to work with all jurisdictions to address the urgent challenges in gas market transformation,” said Ms Read.

Download the DAE report: ‘Gas Market Transformations - Economic Consequences for the Manufacturing Sector’


Media contact:  Claire Selby, [email protected], 0448 028 876.
Released 10 October 2014


PACIA is the pre-eminent national body representing Australia¹s $40bn chemistry industry, whose businesses directly employ 60,000 people and contribute approximately 11.5% of total Australian manufacturing production. PACIA members comprise a broad range of companies positioned across the entire value chain.  Members include chemicals manufacturers, importers and distributors, logistics and supply chain partners, raw material suppliers, plastics fabricators and compounders, chemicals and plastics recyclers and service providers to the industry.  These businesses range from small family-owned companies and innovative medium-sized enterprises, to leading national and multinational enterprises.

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