Replicating US gas hub won't work: sector

·1-min read

A key energy industry group does not want the federal government to try and copy a US gas hub for Australia as part of its economic recovery plans.

The Australian Petroleum Production and Exploration Association is a clear supporter of the Morrison government's proposed gas-fired economic recovery.

But the oil and gas sector group is warning the government against trying to turn Queensland's Wallumbilla gas supply hub into a version of America's Henry Hub.

APPEA chief executive Andrew McConville says Australia should develop its own market-driven system.

"Efforts to model Wallumbilla on the Henry Hub are ill-conceived if they expect the same outcomes can be achieved," he said.

"While there are lessons to be learned from the Henry Hub, we need an Australian solution for an Australian industry - not something based on a different market we are not connected to more than 14,000 kilometres away.

"We need to ensure the hub structure should minimise the need for government intervention in the operation of the market."

The group supports the Wallumbilla gas hub in principle but wants to ensure it's coupled with reporting rules for both producers and manufactures.

APPEA made its position clear in its submission to the federal government's planned gas-fired recovery.

The government want to increase gas supply in a bid to lower prices and better support manufacturing, pointing to the Henry Hub as its goal.

The gas-fired recovery is a plan of 13 measures with a focus on unlocking supply, efficient transportation and empowering consumers.

The government has announced five gas fields it wants to open up to support exports and manufacturing.

Environment groups doubt the plan, saying taxpayer money should instead be invested in renewable energy.