Taxpayers Face Up to $2 Billion in Potential Gas Subsidies

SYDNEY, Australia – Taxpayers could face financial responsibility for up to $2 billion in additional subsidies for gas supply and infrastructure if the BlueScope consortium acquires the struggling Whyalla steelworks, a recent analysis by Climate Energy Finance reveals.

The report indicates that substantial subsidies might be directed to Santos, a prominent oil and gas company, to assure a consistent gas supply following the acquisition. Furthermore, public funding is anticipated to be necessary for the expansion of a 160-kilometer pipeline designed to enhance gas transportation.

The taxpayers’ total financial commitment could reach between $1.7 billion and $2 billion over the next decade, highlighting the significant implications these costs may have on local infrastructure and public finances.

“The potential financial burden underscores the ongoing challenges related to energy supply for industrial operations in the area,” says a Climate Energy Finance spokesperson. “It’s essential to consider both the costs and the benefits when looking at such significant investment.”

If the deal proceeds, the implications for taxpayers could be substantial, with many questioning the sustainability of such financial commitments. As discussions surrounding the acquisition continue, stakeholders are urged to thoroughly evaluate the long-term impacts before any final decisions are made.