Gas expansion policy is Labor's climate policy problem

The Labor Party wants to act on climate change, yet on April 23rd during the election campaign Opposition Leader Bill Shorten announced reform of the Northern Australia Infrastructure Fund. As part of this reform process $1.5 billion would be allocated to constructing a gas pipeline network enabling development of new gas fields in the Beetaloo Basin in the Northern Territory, and the Galilee Basin in Queensland, as well as the existing Bowen Basin gas fields.

This is new infrastructure that would enable export of gas, and the development of new gas fields. It is sharply at odds with reducing emissions and stopping development of new fossil fuel reserves.

Labor’s Northern Australia Development Fund will provide a financing facility and work with infrastructure Australia to identify and support projects of national economic significance – such as gas pipelines – in Australia’s north.

As part of these changes, up to $1.5 billion will be set aside to unlock gas supply in Queensland’s Galilee and Bowen basins and connecting the Beetaloo to Darwin and the east coast. This project would support Darwin as a manufacturing and gas export powerhouse as well as increasing supply to Queensland and the eastern seaboard to put downward pressure on prices for gas users. Opening up the Beetaloo alone could provide enough gas to supply the domestic market for up to 400 years.

The proposed infrastructure

Quid Pro quo?

In light of Labor's new policy to spend $1.5b of taxpayer $ subsidising a fracking carbon bomb bigger than Adani, we thought we'd just leave this here.

Note: @originenergy & Santos will both gain from this generosity.

Ask Labor to reverse their policy: https://t.co/JbbRfOqarN pic.twitter.com/lxgExiIDH3

— Market Forces (@market_forces) April 25, 2019

So @billshortenmp & @Mark_Butler_MP announce that the tax haven based multinational gas cartel running 🇦🇺 gas will get a new $1.5bn capital subsidy to build pipelines to export even more LNG. This subsidy goes to a royalty evading industry that also pays next to no corporate tax!

— 💧 Tim Buckley (@TimBuckleyIEEFA) April 23, 2019

Where is the $1.5b supporting industry to invest in gas efficiency programs so we need less gas, rather than more? The gas industry is all supply supply supply, and all about them making more money.

— Nicholas Aberle (@NickAberle) April 24, 2019

References:

Bill shorten media Release, 23 April 2019, Northern Australia Development Fund to Unlock the Economic Potential of Our Great North https://www.billshorten.com.au/northern_australia_development_fund_to_unlock_the_economic_potential_of_our_great_north_tuesday_23_april_2019