Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Saudi Deputy FM meets Lt. Gen. Al-Burhan of Sudan    Al-Khateeb: Saudi Arabia is the largest global investor in tourism sector "Saudi Land" pavilion inaugurated at World Travel Market in London    Saudi Crown Prince, Japanese PM discuss over phone efforts made to achieve peace in the region    Saudi Arabia, in its drive to enrich Arab culture, launches Arab Week at UNESCO in Paris    Neymar exits Al Hilal match with muscle injury, leaving fans disappointed    AlHisn Big Time Studios unveiled to transform film and TV production in Riyadh    Saudi Arabia approves cooperation agreement with US for the use of outer space for peaceful purposes    Quality of Life Program CEO highlights Saudi urban transformations at UN-Habitat conference in Cairo    Almarai wins 'Best Corporate Sukuk' at Asset Triple A Islamic Finance Awards    Top climber falls to death after rare Himalayan feat    US voters flying home in time for election    Drones and snipers on standby to protect Arizona vote-counters    India's Modi condemns violence after Canada temple incident    Elon Musk can keep giving $1m to voters, judge rules    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Quincy Jones, titan of US music, dies aged 91    Hidden sugars in Asia's baby food spark concerns    HONOR unveils pre-order of the stunning HONOR MagicBook Art 14 Featuring an ultra-slim design, HONOR Eye Comfort Display and AI Cross-OS WorkStation    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Aussie LNG projects need tax relief
Published in The Saudi Gazette on 04 - 03 - 2011

PERTH: Australia's government should ensure the nation's booming liquefied natural gas industry not be charged a proposed carbon tax, or risk a switch to dirtier fossil fuels, Australian Petroleum Production & Exploration Association (APPEA) said Thursday.
"We'll be looking for a design that sees the expansion of natural gas and that is the fundamental and common-sense test of success," APPEA's chief executive, Belinda Robinson, told Reuters.
"We will be looking for a no cost impact (to LNG) – only as a transition measure, of course, until there is some sort of a global carbon price."
Australia announced plans last week for an interim carbon tax from July 2012, with a transition to a full emissions trading scheme three to five years later, to help the country cut emissions by five percent by 2020 from 2000 levels.
But the government has yet to agree on crucial details such as the actual starting price that big business and investors need. The deal would also need approval of both houses of parliament.
Australia's LNG industry, which has about $200 billion worth of projects on the drawing board, should be given permits for 100 percent of their carbon emissions, effectively exempting the industry from the tax due to its role in helping LNG-consuming nations reduce their carbon footprint, Robinson said.
"One hundred percent is the only way to ensure that there's not a cost impact... any cost impact is obviously going to mean that the expansion of natural gas is under threat," she said. Australia aims to export more than 60 million tons of LNG by 2020, up from 16.7 million tons in 2009, to become the second-biggest supplier behind Qatar.
"In a climate change context one of the most significant things that Australia can do is to expand the LNG industry to enable other countries to use Australian natural gas as a substitute for some of their much higher greenhouse gas emitting energy alternatives," she said.
A carbon tax could stifle Australia's booming LNG industry, which could ultimately result in increased use of fossil fuels that emit more carbon, Robinson said.
Footprint
Burning gas in power stations typically releases less than half the CO2 than coal-fired power plants. It also emits much fewer pollutants such as sulfur dioxide than coal.
But LNG's carbon emissions are heavily skewed toward its production – the gas is liquefied by cooling it to – 161 degrees Celsius, a process which requires enormous amounts of energy.
Proponents say lower carbon emissions at the end of its life cycle make up for higher emissions during production.
Production and consumption, though, has surged over the past few years as the world's largest exporter Qatar has started up several huge production lines.
LNG producers would be particularly vulnerable to a carbon tax because they are entirely dependent on exporting their product and already have higher costs than most LNG projects globally with costs of between $6 and $8 per million British thermal units (mBtu). Most non-Australian projects cost less than $6 per mBtu, according to APPEA data.
"Our focus is very much on LNG. It's a growth industry and it's also where the impacts will be felt the greatest, given that it is a trade-exposed industry," Robinson said.
"You only liquefy gas so that you can load it on to tankers and send it somewhere, so it is by definition an export product and given the volumes we're talking about, it's a very exposed and very vulnerable industry," Robinson said.
Ultimately, APPEA would like to see a global framework for carbon pricing, a development which it believes would benefit gas projects.
"In a perfect world, you'd have an international price on carbon," Robinson said. "I don't think anyone is enormously optimistic, sadly, that that's going to be achieved anytime soon."


Clic here to read the story from its source.