A report that labelled a gas pipeline to be built from Tennant Creek to Mount Isa is “alarmist”, according to State Member Rob Katter.
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The report published by the American based Institute for Energy Economics and Financial Analysis last week brought into question the pipeline’s foreign ownership and the tax methods of the corporation that owns it, Jemena.
It said there would be little benefit to Australian interests, that the gas would be unable to compete in an already flooded market, and that only one customer had so far bought gas that would travel the pipeline.
This was North West based fertiliser company Incitec Pivot.
Mr Katter said when criticising the “biased” report that the pipeline would play a huge part in the development of the North West Region.
“I’ve had assurances from Jemena that the pipeline stacks up economically and is most certainly going ahead,” Mr Katter said.
“It’s unhelpful for the community to hear a bias report from an author who is clearly anti-gas and conventional energy.”
Mr Katter refers to Bruce Robertson, the author of the 36 page report which identifies him as an investment analyst, fund manager and professional investor for over 32 years.
“The author is well known as an active campaigner against onshore gas development.
“It’s admirable that the author of the report is focused on relying solely on renewable energy, but that is simply unrealistic at present, and ideologically driven.”
Mr Katter said that the pipeline will be economically viable but acknowledged the global gas market is cyclical, and not immune to instability.
But he looked forward to the first flow of gas to come into Mount Isa through the pipeline from the Northern Territory – scheduled to be in 2018.
Mr Robertson said the Northern Territory government was blinded by hope of additional royalties.
“Developing a pipeline which aims to deliver high-cost gas into an already saturated market is the whitest of white elephants.”