Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Hansard source

I thank Senator Hanson for her very detailed and reasonable question on these important matters for our country. Senator Hanson is right to say that coal seam gas production in Queensland typically is at a higher cost than in other countries, although the estimates that I am advised of range more from $4 to $8 a gigajoule. There are some areas that are more productive than others. Those projects proceeded when oil prices were much higher, and the production that is coming out of Queensland provides us the opportunity to meet the needs of Australia, particularly as the Bass Strait, our traditional source of oil and gas for many decades, declines. We are going to lose from the Bass Strait, on the Australian Energy Market Operator estimates, about a sixth of our domestic east coast consumption in the next year or so. That is a significant decline that we need to make up from other sources.

That is principally why the government has put forward that $90 million—to try to encourage more gas development. Senator Hanson mentioned the $30 million that we are putting towards finding new prospective areas of gas development and also the $26 million we are putting towards a gas acceleration program that partners existing producers in existing basins to bring gas to market sooner, to bring immediate relief for the high gas prices that are burdening our manufacturing sector and household bills. That is why the government is so focused on this. It is important for jobs, it is important for our country and it is important so households can balance their budgets. It is why we are taking such immediate and strong steps—