CPRS uncertainty to impact gas-fired power investments

Release Date: 2010-04-30

The Federal Government’s delaying of the Carbon Production Reduction Scheme (CPRS) is likely to affect investment in gas-fired power generation infrastructure, industry leaders have said.

Santos Chief Executive David Knox said that his company is watching developments in the carbon sector very closely.

“It’s very important for businesses such as ours to have certainty, we won’t invest unless we have certainty,” Mr Knox said.

Energy Supply Association of Australia Chief Executive Brad Page agreed that stable and sustainable greenhouse policy was essential for new energy supply investment, and for commercial viability.

"Investor confidence in the energy supply sector is critical to support new investment of around $50 billion in the next five years, and more in the long term," Mr Page said.

David Knox said that Santos’ LNG investment in Queensland would not be affected by the delay, but said Santos cannot yet make any direct commitments to the carbon sector.

"We would like to [make a commitment], once we are confident we have a carbon price going into the economy,” Mr Knox said. "Santos supports a carbon price in the economy that would lead to a lower carbon future."

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