The Guardian has more on the fight of our lives:
Gas exporters and the Albanese government remain at loggerheads over ensuring eastern Australia has sufficient supplies to meet domestic demand next year.
The government is due to decide within days if it will activate the Australian domestic gas security mechanism, usually referred to the “gas trigger”.
“It appears like a case of brinkmanship,” said Graeme Bethune, head of energy information firm Energy Quest. “There’s no unified position by the exporters and that’s not helping their case.”
…A spokesperson for King said the minister had announced in July she would renegotiate an LNG agreement with east coast producers to help secure ongoing gas supplies. The minister would “have more to say on this matter soon” he said.
“The Albanese government is committed to ensuring affordable, reliable and secure energy for Australian households and businesses,” the spokesperson said, declining to elaborate on the current state of talks.
The gas industry was “committed to ensuring adequate and reliable supply of gas to the domestic market”, Samantha McCulloch, chief executive of industry group APPEA, said.
Whatevs, Sam. How would you even know? A fresh-faced ex-pat strolling into the Evil Gas Cartel at the eleventh hour.
Can we draw succor from the release by Mad King? Who knows. The Albanese government has been sending so many mixed signals out of terror of the miners that it’s impossible to know.
In itself, this is a ridiculous situation to place Australians. They don’t even know if their government will defend them from the rapacious cartel.
There is more at Nine:
Industry Minister Ed Husic has argued gas supply shortfalls and high prices create geopolitical risks for Australia, following the weaknesses in local manufacturing and supply chains exposed at the start of the COVID pandemic.
Heavy gas users, including essential industries such as food manufacturing, fertiliser and brick making, are among those most affected by any high prices and supply shortfalls.
“I will back local manufacturers over multinational greed every day of the week,” Husic told this masthead.
Sources with knowledge of the discussions say Husic has told LNG companies the Albanese government would not accept losses of manufacturing businesses.
Opposition resources spokesman Senator Susan MacDonald said the government should help fund the industry to open new gas fields instead of threatening penalties.
“Minister King knows the answer is bringing online more gas supply but she has her hands tied behind her back and is not supported by her cabinet colleagues,” MacDonald said.
Grattan Institute climate and energy director Tony Wood said the government had very few options but to slug LNG producers, given the high prices would force manufacturing business to close and drive up household power bills.
“I don’t think they have any choice … businesses cannot sustain these prices”, he said. “Retail prices haven’t flowed through yet, because existing contracts are in place but eventually that will happen.”
The Evil Gas Cartel happily gouges on today with gas prices still hovering near $20Gj and power prices steady in the $150MW/h range:
International prices are still insane at around $80Gj.
If Mad King does not enforce a local price cap – I suggest $7Gj – that is where the Evil Gas Cartel will take prices and the Australian economy will cease to exist.
