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Joined: Mar 2006
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Posts: 354
Location: Sydney NSW
Karma: 517 |  | WA Gas Crisis
« Thread Started on Jun 15, 2008, 2:55am » | |
Federal Energy Minister Martin Ferguson says the Department of Defence has surrendered six million litres of diesel to BP in Western Australia, in an attempt to stave off the state's gas crisis.
Mr Ferguson met with Western Australian Premier Alan Carpenter today to discuss Commonwealth assistance during the crisis.
Almost two weeks ago an explosion at a gas facility cut the state's gas supply by one third.
Mr Carpenter says the Federal Government is continuing to offer logistical assistance but the state has not requested any financial support and hopes it will not have to.
Mr Ferguson says the Navy has surrendered six million litres of diesel to BP - about 60 per cent of the state's total daily consumption.
"Six megalitres was made available from the Department of Defence doing the right thing by the WA community," he said.
"That remains in normal refinery capacity to be fed into the market as required and the normal commercial relationships will determine how that is allocated on the ground.
"In terms of whatever request that the WA Government makes, we'll be going out of way to try and meet them."
He also says his department is completing a review of available acreage for development of oil and gas and will apply the "use it or lose it" legislation more rigorously than it has been previously.
"Our job's to basically rigorously apply 'use it or lose it' and basically say to these companies there is opportunity in Australia now to actually commercially bring on these oil and gas developments, which is not only good for exports but also domestic consumption," he said.
"I adopt this view we can both export gas and also develop for local capacity."
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