Incitec Pivot Welcomes Federal Government’s Energy Reforms

Incitec Pivot Limited has welcomed the federal government’s plans to reset Australia’s east coast gas market.

Managing Director and CEO Jeanne Johns said the reforms announced today were in the interests of all Australians.

“We strongly endorse the federal government’s commitment to comprehensive gas reforms. These reforms are about addressing Australia’s uncompetitive east coast gas market which has led to high energy costs that are hurting households and businesses, particularly manufacturers like us,” Ms Johns said. 

“The government’s reforms are key for industrial gas users and households to get a fair deal. We welcome the government’s determination that all customers have access to a fair and affordable gas price.

“An affordable and secure gas price will help reduce household gas bills and create more highly skilled, well paid manufacturing jobs for Australians.

Ms Johns said Incitec Pivot was committed to the government’s proposed new heads of agreement and industry code of conduct. 

“The shared objective of ensuring internationally competitive gas pricing will be paramount and our team is looking forward to working cooperatively and constructively with gas producers in the coming months.”

The government has also committed to a more competitive and transparent Australian Gas Hub. 

“We support the government basing this on the US Henry Hub which will be key to its success. Henry Hub is the only global benchmark with the liquidity, transparency and size to serve this function,” Ms Johns said.

“These reforms support jobs as well as accelerating the economic recovery. By creating a domestic gas market with globally competitive gas prices, manufacturers will have the certainty required to attract investment and creation of high-quality jobs.

“We look forward to working with the government, gas producers and other stakeholders on these reforms which will be a key part of Australia’s economic recovery,” Ms Johns said.

The company joins the following major industrial gas users in publicly committing to the process outlined by the Prime Minister: Brickworks, Qenos, Opal and Adelaide Brighton.