Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

For many decades, liquefied natural gas has been a strategic energy source for Australia and a key industry for our nation's economy. I am pleased to inform the House that a number of visionary business leaders from Western Australia and around the world will be travelling to Canberra this week for the official launch of the LNG Marine Fuel Institute on Wednesday, 21 June. Their collective mission is to see Australian LNG being adopted as the primary fuel for marine transportation, and their vision is for Australian LNG fuel to also power road, rail and mining industries.

This group of innovative and forward-thinking industry leaders has identified an opportunity to position Australia at the forefront of LNG as a marine fuel and for future fuels development. With extensive gas reserves, especially in Western Australia, there is a significant business case to develop these energy resources for the benefit of the Australian economy. Liquefied natural gas projects are driving an unprecedented level of investment in Australia while also delivering reliable and cleaner energy to Asia and the world. Australia currently has seven operating LNG developments, including: the North West Shelf Venture, Darwin LNG, Pluto, Queensland Curtis LNG, Gladstone, Australia Pacific LNG, and Gorgon. Three developments are currently under construction, including Prelude, Wheatstone and Ichthys. In 2015-16, Australia shipped 37 million tonnes of LNG, earning $16.5 billion in export revenue. Australia's 2015-16 LNG production was 48 per cent higher than its 2014-15 production. Australia's LNG exports will more than double over the next five years.

Australia's natural gas reserves have the unique potential to significantly reduce greenhouse gas emissions at low cost. Globally, the marine industry is rapidly transitioning to gas for shipboard power generation and propulsion. International regulations on the air pollution created by ships are becoming increasingly stringent, with increased pressure for reduced emissions being pursued by both the International Maritime Organisation and the United Nations. Australia is well positioned to influence the agenda ahead of these impending regulations through early adoption of LNG as a marine fuel.

With reference to the current energy debate, renewable technologies are only part of the solution to power the nation in the medium term. The desire for cleaner fuels is creating a potential worldwide market for LNG as a transition fuel to renewables. LNG is a reliable source of fuel providing energy security without supply interruption. Trade routes from northern Australia are the perfect place to drive the transition to LNG as a marine fuel, with exporting industries in close proximity to world-class LNG supplies. The opportunity exists to establish supply chains through existing logistics routes, such as those established for the bulk iron ore and LNG shipping industry between Australia and China, Korea, Japan and other emerging South-East Asian economies, with the establishment of an Australian LNG bunkering facility industry to facilitate this.

On behalf of the parliament, I commend the contribution of the founding directors: Richard Sandover of Jackson McDonald; Captain Walter Purio of P and H Marine Australia; Mike Utsler of Woodside; Mary Hackett of General Electric; the Hon. Stephen Smith, former minister; Tony Brooks of Altegra Property Group; and Hero Gohda of Mitsubishi. It has been an honour to work with this team of entrepreneurial business leaders for the past two years since the initial concept was first introduced to me by my the energetic friend, Tony Brooks. We brought the idea to Canberra and drafted the incorporation documents during late-night sessions around my dining room table in Yarralumla.

The marine fuel institute will actively promote the use of LNG as a marine fuel. It will work closely with government and industry stakeholders to develop new industry potential that can deliver enormous benefits to Australia with regard to export revenue, balance of payments, energy security— (Time expired)