According to the Financial Review, domestic gas producers, including Senex Energy, are eagerly awaiting the new rules after introducing price controls last December, causing Senex’s $1 billion Atlas project to be put on hold.
AGL Energy, EnergyAustralia, and Orora have committed to purchasing gas from Atlas, but Senex CEO Ian Davies states that the project will only be revived if the rules prove effective.
Consultancy EnergyQuest said: “Given that international prices have also fallen significantly, it can be argued that a large part of these reductions may have happened anyway.”
The company’s Chairman, Graeme Bethune, added that the intervention also incurred the costs of distorting the operation of the market and weakening investor confidence.
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