Latest / 360 with Katie Woolf / APPEA Chief Executive Samantha McCulloch says the Federal Government's safeguard mechanism on climate change policy moves the goal post for projects like the Beetaloo Basin

Transcript

APPEA Chief Executive Samantha McCulloch says the Federal Government's safeguard mechanism on climate change policy moves the goal post for projects like the Beetaloo Basin · 360 with Katie Woolf

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  Speaker 1: Now the country's peak body for oil and gas. The
• 0:02
  Speaker 1: oil and gas industry has raised concerns that the Federal
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  Speaker 1: government's changes to the safeguard mechanism, which we spoke about
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  Speaker 1: a little bit earlier this morning, ignore the key role
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  Speaker 1: of natural gas in meeting Australia's climate goals. Now, the
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  Speaker 1: Australian Petroleum Production and Exploration Association says that the sector
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  Speaker 1: is committed to net zero by twenty fifty and economy
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  Speaker 1: wide policy to drive down emissions.
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  Speaker 2: Now.
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  Speaker 1: We heard from the Environment Center of the Northern Territory
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  Speaker 1: a little bit earlier this morning, Kirsty Howie, who says
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  Speaker 1: that this is really the sounding of the death knell
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  Speaker 1: for the likes of the Beaterloo and Barossa projects. But
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  Speaker 1: joining me on the line right now is appya's chief
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  Speaker 1: executive Samantha McCulloch. Good morning to you, Samantha.
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  Speaker 2: Good morning Katie, thanks for having me.
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  Speaker 1: Thank you so much for your time this morning. Firstly,
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  Speaker 1: can you explain the Federal government's changes to the safeguard
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  Speaker 1: mechanism and what that'll mean for your industry?
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  Speaker 2: Thanks Katie. Well, the changes that were announced yesterday put
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  Speaker 2: some increasing obligations on the industry, including on projects that
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  Speaker 2: are already very well developed and well advanced. So it's
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  Speaker 2: changed the rules of the games for what are really
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  Speaker 2: substantial investments. As an industry, we are committed to net zero.
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  Speaker 2: Our members APM members have identified their own net zero targets,
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  Speaker 2: some earlier than twenty fifty, twenty forty, or twenty thirty
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  Speaker 2: in some cases. So the industry is already investing to
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  Speaker 2: reduce emissions. We're investing in technologies like carbon capture and
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  Speaker 2: storage to deliver those deep emissions reductions. But having the
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  Speaker 2: rules of the game changed on a fairly frequent basis
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  Speaker 2: at this point in time is a concerns for these investments.
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  Speaker 1: Yeah, what do those changes and to use your words,
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  Speaker 1: having you know, those rules changed, what does it mean
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  Speaker 1: for projects like the Beatleline.
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  Speaker 2: So in the case of the Beterloo, the developments will
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  Speaker 2: now have to ensure that their net zero for all
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  Speaker 2: their direct emissions. But actually, in practice, the developers in
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  Speaker 2: the Bea Toloo were already targeting this and planning for this,
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  Speaker 2: and the Beterloo has very low CO two concentration in
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  Speaker 2: the gas. So for your listeners that might not be
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  Speaker 2: aware when you produce gas. Often there can be CO
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  Speaker 2: two in the field, it's naturally occurring that CO two
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  Speaker 2: is very very low. In the case of Bedloo, it's
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  Speaker 2: sort of one to three percent, So addressing those emissions
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  Speaker 2: is something that the industry was already planning on doing
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  Speaker 2: in the most.
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  Speaker 1: So does it sound the death knell for projects like
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  Speaker 1: the Barossa and the be Toloo as the Northern Territory
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  Speaker 1: Environment Center of SEED.
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  Speaker 2: Look how these changes affect projects differs from projects to
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  Speaker 2: project projects, but in general I would say the Baloo
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  Speaker 2: it's very much in line with what project developers were
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  Speaker 2: already planning to do. And in fact, the Betloo is
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  Speaker 2: just such an important economic and energy security opportunity for
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  Speaker 2: the Northern Territory but also for Australia that it's really
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  Speaker 2: important that we see these projects go ahead. This is
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  Speaker 2: a huge resource that can deliver enormous economic benefits up
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  Speaker 2: to six thousand jobs for the Northern Territory while helping
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  Speaker 2: to meet energy security domestically. So we have organizations like
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  Speaker 2: the a trip of C and the Austrian Energy Market
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  Speaker 2: Regulator warning of gas shortfalls. Bedloo could be operating from
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  Speaker 2: as early as as twenty twenty four and supplying gas
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  Speaker 2: into the domestic market. So it's an opportunity that we
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  Speaker 2: should absolutely be developing and supporting.
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  Speaker 1: Yeah, this is where I always find it really sort
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  Speaker 1: of interesting, and I guess difficult for the regular Joe
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  Speaker 1: to be able to get their hit around because you know,
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  Speaker 1: on the one hand, you've got the Environment Center saying
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  Speaker 1: that this sounds the death knell for the likes of
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  Speaker 1: the Beatloo Dead. On the other hand, you know, we
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  Speaker 1: can all see what's going on on the East Coast,
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  Speaker 1: and we know that there's been some real issues when
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  Speaker 1: it comes to energy and then the cost of power
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  Speaker 1: and the concerns with you know, with some of those
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  Speaker 1: coal fired power stations closing down and what it means
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  Speaker 1: and in terms of transitioning. So I guess there's going
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  Speaker 1: to be people listening this morning who are maybe feeling
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  Speaker 1: a bit confused.
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  Speaker 2: Yeah, and look, Katie, the practical reality is that we
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  Speaker 2: need more gas to support our net zero pathway. So
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  Speaker 2: we need more gas as we move to away from
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  Speaker 2: coal fire generation, and as we try to phase out
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  Speaker 2: coal fire generation, as we deploy more renewables wind and solar,
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  Speaker 2: we need gases that reliable backup partner to be there
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  Speaker 2: when the renewables are not available. So we're seeing this
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  Speaker 2: already now, particularly on the East Coast where demands for
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  Speaker 2: gas is actually increasing for power generation, and then we
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  Speaker 2: still need gas to fuel our manufacturing sector. Gas is
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  Speaker 2: an important speed stop so so many of the things
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  Speaker 2: that we make in produce in Australia, and it will
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  Speaker 2: continue to be relied upon by industry as that reliable fuel.
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  Speaker 2: And of course the industries are playing a leading role
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  Speaker 2: in terms of developing cleaner fuels like low carbon hydrogen,
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  Speaker 2: as well as technologies like carbon capturing storage, which are
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  Speaker 2: really critical to put us on that path to net Buro.
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  Speaker 1: So, Sam, just on the Betaloo, you know where are
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  Speaker 1: we at in terms of that project. How soon are
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  Speaker 1: we anticipating that? You know that things are sort of
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  Speaker 1: going to really start to get under why.
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  Speaker 2: Look, this is a really exciting opportunity. The developers in
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  Speaker 2: the Beloo are moving to target gas production from as
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  Speaker 2: early as midway through next year. There's a plenty of
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  Speaker 2: activity happening there. We're waiting for some final recommendations from
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  Speaker 2: the Pepper inquiry from the Northern Territory government, but with
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  Speaker 2: that resolve, the developments will be able to go ahead
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  Speaker 2: in the coming years, and as we're discussing this is
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  Speaker 2: really important not just the economic activity I think in
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  Speaker 2: the Northern Territory, but just in terms of supporting domestic
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  Speaker 2: supply and energy security in the territory but also along
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  Speaker 2: the East Coast of Australia.
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  Speaker 1: Well happy Chief Executive, Samantha McCulloch. We really appreciate your
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  Speaker 1: time this morning. Thanks so much for having a chat
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  Speaker 1: with us.
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  Speaker 2: Thanks Katie, appreciate it.
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  Speaker 1: Thank you.