ACIL Allen have a history of supporting the gas industry, …

Comment on Fracking inquiry: is ‘probity advisor’ a secret? by Mark.

ACIL Allen have a history of supporting the gas industry, and getting it badly wrong, for example with the Renewable Energy Target (RET), Inpex Ichthys, Fisherman’s Landing LNG terminal at Gladstone, etc.
Their economic benefit “snapshot” for Chevron paints a glowing picture of tax and PRRT paid … but the reality is the multinational gas industry has amassed over $240 BILLION in tax credits and won’t be paying any PRRT for decades.
In my opinion, ACIL Allen were wrong in the Santos NSW EIS. ACIL Allen failed to mention the state of Santos as a company ($9b debt and rapidly declining share price) and Chinese equity firms increasing their potential takeover holdings (and FIRB requirements which have not been approved).
ACIL Allen also failed to mention the current global gas glut – much less the increased production in Qatar, Russia, USA, PNG, and Africa.
The last thing the LNG market needs in the foreseeable future is more LNG – even APPEA said that during their APPEA2017 conference, with words to the effect “we’re not looking at new exploration, we’re looking to see who will survive”.
The global gas glut and future increased production from Australia’s competitors swallows up any need for a large increase in Australian gas fields.
In my opinion, there will be excess Queensland gas by the time Northern Territory gas comes online. The PM’s “Australian domestic gas security mechanism” … or whatever he wants to call the Gas Reservation Policy … puts even MORE pressure on ACIL Allen’s Santos EIS figures.
ACIL Allen based their Santos EIS Economic Benefit Analysis on a recovery in global LNG prices … the only people likely to believe that in a global glut are a few politicians and “[Regulatory] Captured Agencies”. I sincerely hope that the NT Government is not one of them.
Regulatory capture is a form of government failure that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of special interest groups that dominate the industry or sector it is charged with regulating.
When regulatory capture occurs, the interests of firms or political groups are prioritized over the interests of the public, leading to a net loss to society as a whole.
Government agencies suffering regulatory capture are called “captured agencies”.

Be Sociable, Share!