Aussie LNG producers win on emissions trading

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 16 -- Australia's LNG producers and refiners have emerged from the government of Prime Minister Kevin Rudd's emission trading scheme proposals unexpectedly better off than first expected. They will receive 60% of their carbon permits free under the so-called carbon pollution reduction scheme (CPRS).

This differs from Rudd's November comments when he said he was unconvinced that LNG producers needed special treatment under the CPRS.

Details of the scheme, announced this week, mean that Australia will commit to an emissions cut of 5% by 2020 if the world does not sign an effective climate change pact. However this percentage will increase to 15% if a global agreement is reached. The scheme will take effect in 2010.

Australian Petroleum Production & Exploration Association Chief Executive Officer Belinda Robinson said the scheme design had taken a major positive step forward. However, she added, Australia needs to make more progress in accepting that its gas reserves represent a major strategic asset for supplying Australia and the Asia-Pacific region with a cleaner source of energy.

The industry's most vocal critic, Woodside Petroleum Ltd. Chief Executive Don Voelte, acknowledged the government's recognition of the LNG industry as a section likely to qualify for assistance under the scheme. He said Woodside would take some time to study and understand the white paper, but said he remains concerned that in implementing an emission trading scheme, the government might make Australia's industry less competitive with other global producers.

"We do not want a scheme which will cost Australian jobs or lead to an increase in greenhouse gases though the burning of higher emission fuels."

The government will make final decisions in 2009 on the eligibility of industries for free permits.

Related Articles

USW, Shell reach tentative deal to end strike at US refineries

03/13/2015 Royal Dutch Shell PLC and the United Steelworkers union (USW) have reached a tentative bargaining agreement over pay, benefits, and health and safe...

Tillerson: Sound policies needed to buoy N. American energy revolution

03/13/2015 The US government needs to adjust its energy policies to ensure the country realizes all the benefits of the new era of energy abundance, said Rex ...

USGS: More data needed to grasp fracing’s water-quality risks

03/13/2015 More data and research will be necessary to better understand potential water-quality risks associated with US unconventional oil and gas resource ...

Afren reaches recapitalization agreement

03/13/2015 Afren PLC, London, has reached a recapitalization agreement with creditors that its interim managers say would, if approved by shareholders, preclu...

Prosper files OSCA application for Rigel oil sands project

03/13/2015 Prosper Petroleum Ltd., Calgary, has filed an Oil Sands Conservation Act application with Alberta Energy Regulator for the Rigel oil sands project.

ExxonMobil resumes drilling from Point Thomson near ANWR

03/12/2015 Following years of legal wrangling, ExxonMobil Corp. has resumed drilling in the high-pressure Point Thomson gas-condensate field on Alaska’s North...

Oil Climate Index measures 30 global crudes’ environmental impacts

03/12/2015 Researchers at the Carnegie Endowment for International Peace, Stanford University, and the University of Calgary unveiled the first Oil Climate In...

API is examining dilbit’s environmental impacts when released

03/10/2015 The American Petroleum Institute is studying the properties of diluted bitumen (dilbit) and expects to develop findings about how oil sands crude b...

Dunn named president of Questar Pipeline

03/10/2015 Micheal Dunn has been named executive vice-president of Questar Corp., Salt Lake City, and president of the company’s interstate pipeline subsidiar...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected