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The release of the Energy Green Paper welcomed by the Australian chemistry industry

The Australian chemistry industry has today welcomed the release of the Energy Green Paper by the Federal Department of Industry.

“The Energy Green Paper is the much awaited platform for the reform and focus of energy policy in Australia, to help bring greater certainty and stimulate investment. This includes a framework for the appropriate use of Australia’s considerable gas resources,” said Samantha Read, CEO at the Plastics and Chemicals Industries Association (PACIA).

“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 Energy Green Paper recognises the need to examine and pursue all of the market-based mechanisms available. This is consistent with PACIA’s view of a balanced outcome of both energy exports alongside gas used for chemical feedstocks to support a diverse, robust and competitive manufacturing economy.

“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. 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 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.

“We must ensure there is a strategy to address supply tightness, in particular the unprecedented gas shortfall on the East Coast,” said Ms Read.
“The reform framework provided in the Energy Green Paper will require national policy leadership and engagement. We look forward to providing comments and recommendations into the Energy Green Paper process, and continuing work with all jurisdictions on the range of improvements required,” said Ms Read.


Media contact:  Claire Selby, [email protected], 0448 028 876.
Released 23 September 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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