Costello lobbying US on gas

TREASURER Peter Costello will dramatically increase the Government's efforts to get Australian gas into the lucrative US market.

Environmental concerns in Washington had stopped a campaign by Australian producers over the past three years to be allowed sale rights.
However, Mr Costello, visiting Los Angeles for a week-long Australian promotion festival, will address a national forum to seek access for Australian producers.

The Government has pushed its US counterparts over the past few years, but with little success.

Under producers' plans, particularly from BHP Billiton, a terminal would be built off the coast of California
Australian gas would be shipped to that point and then piped to the mainland.

Mr Costello yesterday said there was strong potential and the Government wanted Australia to sell gas to the US.

A deal would be worth billions, but the Government has yet to set an exact figure on the potential windfall.

"I am particularly interested in the potential of Australia selling gas into California," Mr Costello said.

"It's a case where we have a good supply of an environmentally clean energy source.

"And California has been struggling to keep pace with demand."

Mr Costello will address the Energy Security Forum, which aims to shore up world energy transactions.

It is understood the recent Russia and Ukraine gas dispute has concerned the Treasurer.

Australia is the chair country of the powerful G20 organisation this year and Mr Costello plans to push the issue in that forum.

Australia will host a meeting of the G20's central banks and finance ministers this year in Melbourne.

Australia has a record of exporting gas safely, and in 2004 snared a Chinese contract to buy $25 billion worth of the commodity.