Federal Energy and Resources Minister Martin Ferguson has addressed liquefied natural gas (LNG) project issues, including overseas demand, taxation reform and skills shortages, at the APPEA 2011 Conference and Exhibition in Perth.

 

“If we are to meet the twin drivers of increasing demand and lower emissions, we are entering the LNG age,” Mr Ferguson said in his speech.

 

The recent devastation in Japan was cited as a possible catalyst for an increase in demand for LNG over the short and long term. He also added that Australia's existing and proposed projects have positioned the country well to meet the increased global demand for LNG.

 

Mr Ferguson added that the significant pressure on the labour market in terms of jobs, skills and wages within the energy sector is “at the forefront of the government’s mind”.

 

“With record levels of planned capital expenditure of around $A150 billion in the sector, demand for labour will be immense over the next few years, peaking in 2014,” Mr Ferguson said.

 

Mr Ferguson also discussed the Petroleum Resource Rent Tax negotiations and the government’s proposed carbon pricing mechanisms, and said “it is a time for reform”.