Analysis by Climate Energy Finance reveals that taxpayers might be responsible for up to $2 billion in additional subsidies related to gas supply and infrastructure. This scenario arises if the BlueScope consortium acquires the struggling Whyalla steelworks.
Potential Costs of Whyalla Steelworks Rescue
The investigation indicates that oil and gas company Santos could receive substantial subsidies for gas supply. In addition, public funds may be necessary to support the expansion of a 160km pipeline to transport gas efficiently.
Breakdown of Expected Costs
- Estimated taxpayer funding: $1.7 billion to $2 billion
- Timeframe for costs: Over the next 10 years
- Proposed pipeline length: 160km
The implications of these findings are significant for local infrastructure and taxpayer contributions. The potential financial commitment highlights the ongoing challenges related to the energy supply for industrial operations in the region.
In conclusion, should the BlueScope consortium proceed with the acquisition of Whyalla steelworks, it could lead to substantial costs for taxpayers in the years to come. As discussions continue, it remains crucial to evaluate the long-term benefits against these potential financial burdens.
