**Check against delivery
Ladies and gentleman, let me start by welcoming you to Canberra.
As Minister for Tourism I understand the important role that business tourism plays in Australia's economy.
Spring is a wonderful time to be in Canberra. I hope you have managed to see some of Canberra's sights while you are here.
Thank you for the invitation to participate in your seminar this morning.
This is my second time addressing this conference and can I say that I couldn't agree more with this year's seminar theme - the future is gas.
I welcome today the young delegates in the room who are part of the Australian Gas Industry Trust's Gas Speak Conference.
You will be the future leaders of the gas industry and I encourage you take advantage of this great opportunity.
I commend the industry's initiative in providing this kind of support to cultivate its future leaders.
Australia's gas industry
It is a very exciting time to be working in Australia's gas supply industry.
Gas has an important role to play in Australia's future, particularly in light of the focus on reducing greenhouse gas emissions.
Australia's gas consumption grew by 7.9 per cent per annum between 1970-71 and 2007-08.
In 2007-08 gas accounted for 22 per cent of Australia's primary energy consumption and 16 per cent of Australia's electricity generation.
Australia's gas consumption is projected to double by 2030.
This is as a result of gas being forecast to provide 33 per cent of our primary energy consumption and 37 per cent of our electricity generation by 2030.
Clearly there will be a significant need for the private sector to continue to invest in supporting pipeline infrastructure.
This growth in pipeline investment will come on top of the tripling in the length of Australia's gas transmission network that has occurred since the early 1990s, and the more than $4 billion that has been spent on new and upgraded pipelines since 2000.
The growth in the gas supply industry will occur in an environment where companies are placing a premium on hiring, training and retaining skilled labour.
I am attending EE-Oz's skills conference tomorrow, and I know that they will be discussing the workforce needs of this sector.
The Government is conscious of these workforce pressures, and is continuing to invest in skills.
This forecast growth in domestic gas consumption is part of a global trend, which will also be of benefit to our exporting LNG sector.
Fortunately, Australia has significant gas resources - large enough to support projected domestic, and export market growth beyond 2030.
As the Minister for Resources and Energy, it is my responsibility to ensure the right investment framework exists so that Australia can keep up with demand for gas domestically while expanding our LNG exports.
I intend to do just that.
Climate Change
Given its capital intensive nature, the energy sector needs long-term policy certainty to make the necessary investments to meet future demand.
The Government is committed to providing this certainty.
Fundamentally, that goes to questions around putting a price on carbon.
In an environment of policy uncertainty, business will defer investment decisions, leading to less investment and fewer jobs.
Government recognises the need to provide policy certainty so that the pipeline of investment can continue.
That is why the Prime Minister recently announced the establishment of a Multi-Party Climate Change Committee which will explore options around the introduction of a price on carbon.
Industry has an important role to play in this debate, which is reflected in the Government's decision to establish a Business Roundtable to provide advice regarding views on the complex issues associated with pricing carbon.
In addition to providing advice to the Government, industry also has an important role in making its views known to all parliamentarians.
Resolving these climate change related policy questions is important to allow the gas sector to go forward and make investment decisions.
Pipeline Investment
In addition to climate change policy, there are other areas where Governments can provide policy certainty.
In June this year, I provided a 15 year no-coverage determination, consistent with my responsibilities under the National Gas Law, to transmission pipeline infrastructure associated with the BG Group's Queensland Curtis LNG project.
This is the first determination under the new greenfields incentives in the National Gas Law that was introduced to provide investors with regulatory certainty.
Coal Seam Gas
And of course one of the most exciting potential growth sectors is the emerging coal seam gas industry.
Australia's coal seam gas reserves are significant.
In Queensland alone, GeoScience Australia estimates coal seam gas resources at around 150 trillion cubic feet: enough to power the whole state for more than 500 years.
As with all major resource projects, industry's engagement with the community is a critical factor for success.
There are important environmental considerations primarily relating to groundwater that are currently being examined.
A decision by my colleague Tony Burke, the Minister for the Environment, on the British Gas and Santos projects is due on 22 October.
I am confident that the processes we have in place for environmental assessment are robust and will ensure the industry develops in an environmentally and economically sustainable way.
Energy White Paper Process
Last week the Prime Minister's Task Group on Energy Efficiency Report was released.
The report makes a number of recommendations - of particular interest to this audience is the recommendation to expand the Energy Efficiency Opportunities program to cover networks.
The Government will carefully consider the Report's recommendations and engage with industry and relevant stakeholders as part of this process.
This Report represents a significant contribution to the energy efficiency debate and is an important piece of work as part of the Government's Energy White Paper process.
While it is difficult to finalise an Energy White Paper when significant climate change policy questions are yet to be resolved, I have asked my Department to continue work as part of the Energy White Paper process.
Energy Market Reform
As chair of the Ministerial Council on Energy (MCE), I appreciate the importance of progressing our energy market reform agenda.
The major initiatives of the MCE's gas market reform agenda to date have included the successful creation of:
- the National Gas Law and National Gas Rules;
- the establishment of the National Gas Bulletin Board; and,
- the annual publication of the Gas Statement of Opportunities which began last year.
The most recent gas reform achievement was the establishment of the Short Term Trading Market (STTM), which successfully commenced with hubs in Sydney and Adelaide on 1 September 2010.
The creation of this new wholesale market represents a significant step forward in the way gas is bought and sold in Australia, providing additional flexibility and improved price transparency in the overall market.
The STTM is an excellent example of a successful collaborative work agenda between industry, government and the Australian Energy Market Operator.
Gas Powered Vehicles
I understand that in association with this Seminar, ActewAGL are tomorrow launching their dedicated CNG public refuelling station in Fyshwick.
I recognise that ENA is seeking to develop a work plan to examine issues around gas as a fuel for the transport sector.
During the election campaign, the Government committed, through the Ministerial Council on Energy, to ask the Australian Energy Market Commission to identify any barriers in Australia's energy market frameworks limiting the uptake of electric vehicles.
In giving effect to this election commitment, I have asked my Department to consider whether this study could be expanded to also look at whether there are any barriers in Australia's energy market frameworks limiting the uptake of gas powered vehicles.
Conclusion
As we know, Australia's natural gas industry is facing a wealth of opportunities.
The Australian Government is committed to ensuring that the right policy frameworks are in place to ensure investment is delivered so that we can develop these opportunities.
I encourage you to remain engaged in the policy debates.
Thank you.