By Raquel Mustillo
MEMBER for MacKillop Nick McBride has defended taxpayers footing a multimillion dollar State and Federal Government bill to facilitate gas extraction in the Limestone Coast, saying governments should provide funding to the high-risk sector to drive down energy costs.
But Limestone Coast Protection Alliance chair Angus Ralton said the impending suspension of Beach Energy’s Katnook Gas Plant due to dwindling gas reserves should prompt a rethink into fossil fuel subsidies.
The Liberal MP said although Beach’s announcement was disappointing, he was hopeful more seismic testing at the nearby Dombey-1 well would result in the reinvigoration of the refinery.
By Raquel Mustillo
BEACH Energy will indefinitely suspend operations at the recently redeveloped $22m Katnook Gas Plant next financial year following declining gas volumes at its Limestone Coast wells.
In a statement to shareholders, Beach said production in the South Australian Otway Basin had decreased by 23pc – 57 thousand barrels of oil equivalent (kboe) – with shares plummeting 24.1pc pc to $1.28 on Friday – the lowest since November last year.
The gas plant, which was funded by a $6m contribution from the Federal Government’s Gas Acceleration Program, was commissioned in January last year and processes raw natural gas from the nearby Haselgrove-3 well.