PERTH – Energy major Senex Energy has warned that the federal government’s cap on gas prices placed its A$1-billion expansion plans at risk.
The company on Thursday said that while it continues to engage with these customers, the new laws have made it impossible to contract with confidence and puts this investment, and therefore new gas supply to homes and industry, at risk.said the company will honour existing commitments to customers, however given the new laws it is not possible to finalise any new gas agreements.
“Price controls drive up demand however do nothing to increase supply, a situation that can only lead to unintended consequences requiring more intervention, potentially including energy rationing and breaking LNG export contracts,” he said. Senex has suspended major items of investment for its expansion, including recruitment for 70 roles and more than 300 contractor jobs during construction, pending the outcome of the consultation process ending in February 2023.said the cost and risk equation of its Australian business had now changed significantly.
“This new law has the potential to massively disrupt Australian energy supplies, and the Australian people could be dealing with the fallout from last week’s decisions for a very long time.