’Green pandering’ Vic’s shaft Qld on gas

FEDERAL Resources Minister Matt Canavan has demanded Victoria extract its own gas, claiming Queenslanders were paying the price for the state’s green pandering.

A new report has foundQueenslanders face higher energy bills because the Victorian and New South Wales governments had placed restrictions on natural gas extraction.

The report places renewed pressure on the states to relax their policies on fracking.

It comes amid speculation that new Prime Minister Scott Morrison will be more bullish on supporting resource investment, with the sector lining his coffers ahead of a looming federal election.

EnergyQuest’s latest Energy Quarterly report found Queensland’s coal seam gas industry was outpacing LNG exports and helping to meet east coast domestic demand.

“Gas flowed consistently from Queensland to the other states in (the second quarter),” the report said.

EnergyQuest’s chief executive officer Graeme Bethune said the failure of southern states to use their own resources meant Queenslanders would pay more for gas.

“It puts pressure on gas prices in Queensland when you send gas to southern states. It’s supply and demand,” Mr Bethune said yesterday.

Victoria last year became the first state to permanently ban fracking for coal seam gas in regional areas. The Victorian Government has since refused to bow to pressure from Canberra to overturn the ban.

Victorian Treasurer and Resources Minister Tim Pallas hit back last week, saying the Andrews Government would be guided by the science and was investigating its potential gas resources.

He said there would be no compromise on the state’s fracking ban.