PERTH (miningweekly.com) – The chairperson of oil and gas major Santos has called on the Australian government to maintain regulatory stability in the country, ensuring future investments.

Speaking at the annual general meeting, chairperson Peter Coates noted that Australia’s oil and gas resources sector was facing a challenging environment.

“First amongst these is the regulatory uncertainty that continues at both the state and federal level. The industry now faces substantial duplication of processes, uncertainty about further changes to the regulatory framework, and frankly not enough urgency on the part of government to resolve these issues.”

Coates noted that the result was a complex mix of regulatory and policy hurdles, without the coordination to ensure that developments could be assessed efficiently and effectively.

“We understand the need for government to ensure that industry operates safely and sustainably. However, it is equally important that developments proceed in a timely manner, if a secure supply of gas is to be maintained.”

Coates conceded that while getting the balance right wasn’t easy, it was essential if firm project commitments were to be made.

He pointed out that the second challenge facing the resources sector was cost competitiveness.

“Australia’s gas industry is one that several other countries around the world aspire to. As Asia seeks to increase its security of supply, it will look to diversify its supply sources,” Coates predicted.

He noted that as a destination of capital, Australia offered several advantages, including geographic proximity to Asia, a reliable track record of delivery, and abundant resources.

“However, we must protect that position. Liquefied natural gas (LNG) projects are being developed in Canada, East Africa and the US.

“The challenge for Australia’s projects and for policy makers is to ensure that Australia remains cost competitive. This is the only way that further Australian projects can be sanctioned to meet both domestic and Asian demand.

“If we don’t remain competitive, others will step in,” Coates warned.