Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Hansard source

The Labor Party never had a gas reservation policy. The only idea you put forward is that future developments may be reserved for some domestic use. That would do nothing for the immediate issue we have today, which is the supply shortfalls, as indicated by AEMO and others. Only Prime Minister Turnbull's response, which is to put in place these export restrictions, can have that effect to meet the supply shortfalls.

We're already seeing the positive impact of the discussions and the actions that we are taking. In the member for Port Adelaide's own state of South Australia, he knows that the second unit at Pelican Point—240 megawatts of gas-fired power—was able to come on because the Prime Minister spoke to the energy companies and, as a result, ENGIE was able to secure the gas contracts from Origin. That's a practical initiative which is better for the people of South Australia. We've seen the spot price come down significantly, as the Prime Minister has alluded to. We've seen companies like Origin and Santos ensure there is more gas available in the domestic market. We're starting to see the flows of gas from the north, from Wallumbilla, down to the south, whereas previously it was the other way. And we've seen more gas into the domestic market than previously.

These are the concrete actions that are having a practical effect. The members opposite should know that, for every dollar a gigajoule you can bring down the price of gas, that is worth $10 a megawatt hour. The Labor Party ignored the advice of their own energy white paper, ignored the advice of the Australian Energy Market Operator and denied that they were ever given that advice, only to confess under enormous pressure. It's the coalition and Prime Minister Turnbull who are getting more gas into the domestic market and ensuring that the spot price for gas is coming down significantly.

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