Saturday, February 18

Higher gas price to unlock resources, says Santos chief

SANTOS chief executive David Knox has warned a push from Incitec Pivot boss James Fazzino to reserve some of the nation's vast gas resources for domestic users would not have the desired effect of providing cheaper gas for Australian manufacturers.   
Speaking after Santos logged a 51 per cent rise in full year net profit to $753 million on the back of asset sales and rising petroleum prices, Mr Knox said he did not see the push as a potential risk to the higher east coast gas prices expected when coal-seam gas exports from Gladstone start in the next two to three years.

"I see it as a far bigger risk to him (Mr Fazzino) getting gas at all," Mr Knox said yesterday
"We're unlocking the resources and in order to do that we need higher prices . . . a gas reservation policy would have the clear effect of reversing the amount of investment in gas."


The Australian

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