The Australian Petroleum Production & Exploration Association is calling for reforms to alleviate the regulatory burden on Queensland’s natural gas industry.
APPEA urged the political parties to establish a “red tape-busting” taskforce in order to cut down the regulatory costs and approval times.
According to APPEA Queensland director Rhys Turner , said that government’s own analysis, regulation currently accounts for 37 percent of exploration costs and almost 10 percent of all costs over a project’s life.
A recent McKinsey & Company report estimates up to $50 billion must be invested in new gas supply between now and 2030 to offset falling production from traditional reserves.
“Restrictions in other states mean there will continue to be increasing pressure on Queensland to do more of the heavy lifting when it comes to supplying the east coast gas market into the future,” Turner said.
He called for a predictable and more efficient regulation be put in place to attract long-term investment in order for the new energy supply to be brought forward.