30 JULY 2013www.international.to
Northern Territory Government has offered 195PJ of gas to Pacific Aluminium
Edited by : AL CIRCLE
2 min read
The Deputy Chief Minister Dave Tollner will visit Gove today to update locals on progress with plans to get gas to the town.
“We are taking this issue very seriously. We want to assure the people of Gove that we are working hard to find a long term solution to the town’s energy needs that is affordable for Territory taxpayers. We believe a viable proposal is now on the table,” Mr Tollner said.
“Northern Territory taxpayers would have been exposed to a massive $3.2 billion gas pricing risk and the possibility of long term energy shortages if we had gone ahead with Pacific Aluminium’s original 300PJ request.
"Accepting this request would have been fiscally irresponsible, adding to the $5.5 billion debt we inherited from Delia Lawrie and posing a threat to our credit rating.
“The original plan would have inevitably seen higher energy prices for Power and Water customers across the Territory and we have now put forward a responsible, viable alternative.”
Mr Tollner will travel to Gove with the Federal Shadow Minister for Energy and Resources, Ian Macfarlane, who is expected to make an announcement about the new offer that is on the table.
“The NT Government has offered 195PJ of gas to Pacific Aluminium over 15 years under a dual fuel model. Federal underwriting of the pipeline is the key to its success,” Mr Tollner said.
“The Federal Government’s refusal to underwrite the Territory’s financial risk under the original proposal meant we couldn’t go ahead with that plan.
“It’s time for Kevin Rudd to step up and underwrite the pipeline needed to make this new deal work.
“The dual fuel model is a good solution for everyone and we’re keen to make sure Gove residents understand why we have chosen to pursue this option.”
This model would see Pacific Aluminium use a combination of mostly natural gas with some heavy fuel oil, reducing the company’s operating costs while giving them time to find alternative gas suppliers to meet their long term needs.
“We understand the importance of the refinery to the local community and the Territory economy and we are confident this is a better, longer-term solution for the town,” Mr Tollner said.
“We are taking this issue very seriously. We want to assure the people of Gove that we are working hard to find a long term solution to the town’s energy needs that is affordable for Territory taxpayers. We believe a viable proposal is now on the table,” Mr Tollner said.
“Northern Territory taxpayers would have been exposed to a massive $3.2 billion gas pricing risk and the possibility of long term energy shortages if we had gone ahead with Pacific Aluminium’s original 300PJ request.
"Accepting this request would have been fiscally irresponsible, adding to the $5.5 billion debt we inherited from Delia Lawrie and posing a threat to our credit rating.
“The original plan would have inevitably seen higher energy prices for Power and Water customers across the Territory and we have now put forward a responsible, viable alternative.”
Mr Tollner will travel to Gove with the Federal Shadow Minister for Energy and Resources, Ian Macfarlane, who is expected to make an announcement about the new offer that is on the table.
“The NT Government has offered 195PJ of gas to Pacific Aluminium over 15 years under a dual fuel model. Federal underwriting of the pipeline is the key to its success,” Mr Tollner said.
“The Federal Government’s refusal to underwrite the Territory’s financial risk under the original proposal meant we couldn’t go ahead with that plan.
“It’s time for Kevin Rudd to step up and underwrite the pipeline needed to make this new deal work.
“The dual fuel model is a good solution for everyone and we’re keen to make sure Gove residents understand why we have chosen to pursue this option.”
This model would see Pacific Aluminium use a combination of mostly natural gas with some heavy fuel oil, reducing the company’s operating costs while giving them time to find alternative gas suppliers to meet their long term needs.
“We understand the importance of the refinery to the local community and the Territory economy and we are confident this is a better, longer-term solution for the town,” Mr Tollner said.
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