PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 175F Assessing commercial viability

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 175F

175F Assessing commercial viability

In assessing commercial viability of the supply of gas produced from PGPLR land for section 175E , the Minister or the chief executive may have regard to the following—

(a) whether the rate of return on the investment of money required to produce gas from the land and supply it to the Australian market at least meets the rate of return considered acceptable by a reasonable petroleum producer or a lender to a petroleum producer;

(b) the market conditions at the time the application is made under section 175E , including, for example, access to markets, the expected duration of a contract or other arrangement for the supply of the gas, the price likely to be paid for the gas and the certainty and timing of market opportunities;

(c) whether, if commercial viability is dependent on the applicant reaching agreement with another entity or using the other entity’s facilities or technology, the applicant can complete the agreement or use the facilities or technology on terms the applicant considers provide a reasonable rate of return for the applicant.