BlueScope has sounded the alarm over Australia’s energy crisis, warning that unsustainably high gas prices are pushing domestic manufacturing to a “tipping point”.<\/p>\n
The steelmaker has reported a full year profit of $84 million, a 90 per cent drop from the $721 million reported a year ago.<\/p>\n
Speaking after the company’s AGM, BlueScope CEO Mark Vassella said energy costs in Australia are now three to four times higher than in the US and risked undermining the country’s Future Made in Australia vision.<\/p>\n
Mr Vassella said BlueScope had submitted a detailed response to the federal government’s Gas Market Review including suggested immediate and long-term changes.<\/p>\n
“LNG spot cargos going offshore should come back to the domestic market, exporters not buying domestic gas and re-exporting, and then longer term we need structural reform,” he said.<\/p>\n
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The steelmaker, owner of the Port Kembla Steelworks, reported a 90 per cent drop from its $721 million profit last year. (ABC Illawarra: Justin Huntsdale)<\/p>\n
BlueScope’s neighbour Squadron Energy is planning to impart gas through its Port Kembla Energy Terminal<\/a>, but Mr Vassella ridiculed the idea of Australia needing to import gas.<\/p>\n “In what world does exporting LNG in massive quantities only to reimport to supply a shorted domestic market make any sense?” he said.<\/p>\n “Without immediate intervention there will be no Future Made in Australia.”<\/p>\n Mr Vassella said Australia still needed more reliable and affordable renewable energy after the last remaining proponent of the proposed Illawarra offshore wind project abandoned<\/a> it this month amid a global investor retreat.<\/p>\n BlueScope had previously lodged a submission in support of the project.<\/p>\n