Energy producer Santos Ltd
(ASX:STO) has cautioned that a higher carbon price could be potentially damaging for competitiveness, according to a report in The Australian.
The news comes following a government-commissioned report stating that a $40 carbon price per tonne is necessary to switch from coal-fired to gas-fired power generation.
The paper says Santos’s CEO, David Knox, claims this price would be a shock and instead has recommended the government has a more gentle approach when introducing a carbon price.
According to the Australian Santos’s domestic business would benefit from a carbon price but Mr Knox’s preference for a lower carbon price relates to non-liquefied natural gas (LNG) production.
Santos is pushing for no carbon price on the LNG industry, while the government is believed to be considering a starting price of between $20 and $25 per tonne.
In the 2010 calendar year Santos booked a net profit of $498 million.
