South Australia's energy minister says a warning about looming gas shortages should change the state opposition's mind on unconventional gas exploration.
Tom Koutsantonis says Opposition Leader Steven Marshall's plan for a 10-year moratorium on unconventional gas exploration in SA's southeast, if he is elected premier in 2018, would have a "devastating" effect on power prices.
But Mr Marshall says the proposed moratorium would not hinder SA's power supply as there has been no such exploration or extraction in that area to date.
The Australian Energy Market Operator on Thursday warned of future power supply shortfalls, which could cause blackouts in SA, NSW and Victoria unless gas production is boosted and supplied to electricity generators.
Mr Marshall says his team is standing by its planned moratorium for the southeast, a decision informed by a two-year select committee, but would support gas exploration and extraction elsewhere.
"We would be doing anything we could to accelerate gas exploration in other parts of South Australia, both conventional and unconventional, which we haven't ruled out," he told ABC radio.
Mr Koutsantonis said there had been no unconventional gas exploration in the southeast because opposition to the concept made energy companies wary of investing.
"We need more gas supply in Australia, not less. If the Liberals win the next election and impose their gas ban it will be devastating for power prices and for industries that rely on gas to operate," he said.
'Not listening to South Australian businesses is one thing, but ignoring warnings from the market operator puts our future power supply at risk."
Share
