Senate Economics Legislation Committee [Part 2], , 3:27:38 to 3:32:19
Debate over the definition of additional gas and how unused supply credits are carried forward or reset by the regulator.
Topics: Fossil fuels, Energy prices
Speakers: Senator Susan McDonald, Paula Svarcas, Unknown Speaker, Speaker 22, Robert Jeremenko
>> That's how a market clears,
>> right? So if you like the carpet ads okay I I I am I remain deeply concerned about this element. I think uh if if we can get people who come forward and give evidence that 110% works and it's not just the department then that will be a great start but we have not heard evidence from anybody on that today. So I am really worried you know we we are getting evidence that 102% would would would do this job without risking investment. Um and I guess that's my point. I've I've got a whole lot of of questions on this, but can I just confirm that that of the Queensland LNG exporters, the 50 pedigel over supply volume, will that be shared equally among the three LNG exporters? Not sure that we covered off on this.
>> I think proportionately
>> it's proportionate Senator based on their export volumes,
All right. Is there a a provision in the uh calibration that allows unused credits to be treated differently? So if they've acred over several years, is there is there ability for those to reset to zero if they're not used in the
>> No, Senator. um they must be acquitted within the following three-year period. But as I described before, what the regulator will do is um is make those calibration adjustments year to to balance the market out to the 110%.
>> All right. So, and that applies equally to credits or debits, >> So, both will just continue.
>> And if you've got a debit or a credit, the other one will cancel each other out as the year roll years roll on.
Um, Miss Svarus, last week you said exporters can achieve their domestic supply obligation by partnering with domestic suppliers and delivering their domestic supply obligation through that partnership. >> Um, but [snorts] that only applies to gas. It's considered additional gas. Is that right? >> And the definition of additional gas is yet to be determined.
>> No. No, Senator. I don't think that is right. What the um the bill provides for is um is in the event that that there is like new gas coming into the market then you know a definition can be provided for. But there is a definition in the in the bills on additional what it what additional means. The regulator importantly will provide will establish a baseline to start with and that will give us you know that will that will help identify what additional gas is year on for the years going forward because there will be a baseline established. So the starting point is the establishment of a baseline. So then additional what is additional gas will
domestic projects that are under development take investment from an exporter that could be considered as additional gas. >> Well, who will determine that? Who will determine
>> the regulator is responsible for determining that Senator?
Okay. All right. I might leave the rest of that until tomorrow. can I move to the critical minerals strategy,