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Gas price hikes boon for coal
Release Date: 14 September 2006
With significant rises in gas prices, various industries around the State are turning back to coal.
Premier Coal's manager of sales and marketing Bill Moody said the gas price rises were good news for Collie coal
He said gas price rises were further proof of the volatile nature of gas compared with the stability of coal.
"The price rises demonstrate the problems gas has because it is linked to export pricing," he said.
Mr Moody said gas prices could continue to rise because compared to international levels, Australian gas was still quite cheap.
He said the price rises would not impact the day to day business of companies like Premier Coal but there would be favourable outcomes.
"In the longer term it will make coal more competitive," he said. "It is really good news and it is very positive for Collie coal."
Worsley Alumina community relations officer Mick Wheeler said Worsley was currently feeling the upward price pressure from its gas suppliers.
He said Worsley was negotiating new gas contracts at the moment and their suppliers were indicating the price of gas was going to be more expensive.
Verve Energy recently announced its Kwinana Power Station would continue to burn Collie coal and Cockburn Cement's main lime kiln, which was being run on gas, will also revert to coal.
Collie-Wellington MLA Mick Murray said the future of Collie coal was in the best shape it has been in for years.
Mr Murray recently had a meeting with Premier Alan Carpenter, Energy Minister Fran Logan and State Treasurer Eric Ripper which he said went very well.
"They assured me there was a commitment not just to the Collie coal industry, but to Collie as a whole," he said.
Mr Moody said Premier Coal had always been confident Collie coal could meet competition from gas, provided the coal industry could continue to compete on a level playing field.
Any queries from the media are directed to Verve Energy's Corporate Relations branch.
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