The reporting on this story is so bad that the journalists should be fired. Only stakeholders were interviewed, no independent experts commented, and zero research was conducted.
Are Nick Toscano and Mike Foley the nom de plumes of a new hallucinating Nine AI?
Australia’s biggest east-coast gas exporters are edging closer to striking a new agreement with the federal government that would boost local supplies of the fossil fuel and help temper fears of winter shortfalls in Victoria and NSW.
Resources Minister Madeleine King held talks this week with Queensland’s three exporters of liquefied natural gas (LNG) – Shell’s QCLNG joint venture, Origin Energy-backed APLNG and Santos’ GLNG – to work on a deal over the volume of uncontracted gas that they will hold back from export and reserve for local sales.
“I am confident of securing supplies for the coming year,” King said after the meeting.
Of course Mad King will secure the supplies. She is in the pocket of the East Coast Gas Cartel Cartel, and there’s a global glut of gas.
This pantomime is only about the price we will pay.
At the moment, the Albanese Government’s $12Gj price ceiling for contract gas has morphed into a price floor that holds the local spot gas price above the equivalent international price:
More from the hallucinating Nine AI:
The entire east coast market is on track to be in yearly deficit by 2028 without major investments in new gas fields, upgrading pipelines or commissioning special shipping terminals to begin importing LNG, AEMO said.
Industry insiders on Friday said a new supply deal was likely to be reached soon. Exporters at this week’s meeting had expressed a willingness to do whatever they could to bolster local supplies, one source said, but also recognised that inaction could prompt the government to take emergency steps to intervene in the market – if a shortfall materialised.
The federal government has the power to intervene in the east coast gas market under the Australian Domestic Gas Security Mechanism (ADGSM), which enables King to redirect exports to plug local shortfalls. However, that would mean disrupting energy supplies to Australia’s major trade partners of Japan, China, Singapore and Korea.
Would it? Why does Japan have an immense glut then?
Japan’s utilities could see margins drop and potentially turn negative from a surplus of liquefied natural gas (LNG), according to an Institute for Energy Economics and Financial Analysis (IEEFA) report.
The Asian country’s demand for the fuel has fallen rapidly in recent years, forcing utilties to focus on marketing and selling the fuel abroad.
The report finds that Japan’s largest utilities — including JERA, Tokyo Gas, Osaka Gas, and Kansai Electric — are likely to face an over-contracted position of roughly 11 million tonnes per annum (Mtpa) for the remainder of the decade.
And why are both Japan and China reselling their excess LNG on global markets?
Asian re-exports reached 2.7 million mt/year, marking a 46% year-on-year increase… Having declined in 2022 due to an unexpected increase in LNG demand, European re-exports rebounded by 27% in 2023 to 2.5 million mt/year,” Ayush Agarwal, LNG analyst at S&P Global, said in a 2024 LNG trade report. “Mainland China emerged as the leading re-exporter in the Asia-Pacific region (1.0 million mt)…
These re-exports would cover more than Australia’s needs. North Asia doesn’t need the gas, and we do.
We are being had. Had by our gas export customers. Had by the East Coast LNG Cartel. Had by a treasonous Albanese Government and captured Mad King.
Had by a media that camouflages the giant scam under a steaming pile or poor reporting.
As we know, gas sets the price of electricity, so enjoy your ongoing stratospheric energy bill shocks:
More than 500 households have fallen into electricity hardship every week since the Albanese Government was elected, as cost-of-living pressures continue to outpace energy bill relief.
There are 116,753 energy customers across NSW, Queensland, South Australia and Tasmania accessing electricity hardship arrangements through their energy provider and 27,322 on gas hardship as of December, according to the Australian Energy Regulator.
Analysis of the latest AER data released this month shows the number of households on electricity hardship has increased 59 per cent since June 2022 shortly after Labor was elected, while gas customers receiving support has increased 70 per cent over the same period.
