Gas-powered Origin `would have edge'

Adelaide Advertiser
Thursday 7/8/2008 Page: 61

Origin Energy said it would be a winner when an emissions trading scheme is introduced in 2010, because it uses gas to generate electricity, which is cleaner than coal. Australia's second-largest energy retailer has supported moves by Woodside Petroleum, urging the Federal Government to give free carbon trading permits to the liquefied natural gas sector.

Origin Energy chairman Kevin McCann also called on the Government to create an independent body similar to the Reserve Bank of Australia to regulate carbon trading. Sydney-based Origin Energy is defending a hostile $13.7 billion takeover attempt by Britain's BG Group. BG is partly interested in Origin Energy's coal seam gas reserves, which Origin Energy wants to convert into LNG for export - with a joint venture partner.

"We're generally supportive of the need for government to recognise that trade-exposed sectors should include LNG because it's a good fuel," Mr McCann said in Sydney. Woodside chief executive Don Volte recently warned the proposed emissions trading scheme (ETS) could threaten Australia's LNG industry, which competes internationally. Origin Energy is a supporter of the Government's plan to introduce an ETS by 2010, which is set to lift household electricity bills by 16 per cent on a carbon price of $20 a tonne.