The election would be over if Peter Dutton applied domestic gas reservation in the east. Everybody supports it.
Instead, he’s going to apply nothing whatsoever. The Australian.
The Coalition will demand gas producers commit to prioritising supply to the domestic market in return for approving a “bucket load” of new projects, with a particular focus on ensuring there is more of the energy source produced in Victoria.
Opposition resources spokeswoman Susan McDonald said an assurance over domestic supply would be part of the approvals process under a Dutton government, but played down the prospect of a rewrite of Labor’s controversial gas code of conduct if the Coalition wins the election.
She said Western Australia’s stalled North West Shelf extension would go ahead under the Coalition, and declared she wanted to expedite approvals for gas drilling off the Victorian coast.
Amid industry speculation the Coalition was considering an east coast reservation scheme – which would force every development to carve off a standard minimum for the domestic market – Senator McDonald signalled her approach would be less prescriptive and decided on a case-by-case basis.
Senator McDonald said $10 a gigajoule for Australian gas customers would be a “great price to get back to”, a price not seen since the Russian invasion of Ukraine, with the consumer watchdog reporting that prices offered for 2025 averaged nearly $15 a gigajoule.
…“We’re going to bring on more gas by the bucket load,” she told The Australian.
…Grattan Institute director Tony Wood said the Coalition’s approach was a “form of reservation policy”, despite the Coalition not using the terminology.
You can approve all the gas extraction you want, though nobody knows where any of it is in NSW (outside of Narrabri) and VIC.
Even if it is there, domestic reservation by project won’t fix anything. The reserves, such as they are, are monopolised by the gas export cartel, so it will simply juggle assets to ensure expensive gas stays in Australia and cheap goes offshore for a better return.
Once again, if you are not going to address the real problem of market structure, then you are not addressing anything at all.
Since when was $10Gj cheap?
Moreover, what about gas imports? Without blanket domestic reservation, they will still be needed and if there is no peace in Ukraine the export cartel will drive the price up to import parity, which is still around $24Gj!
Instead, just pull the lever on the ADGSM, the LNP’s own policy mechanism, instead of abolishing it! Don’t reinvent the wheel.
It is perhaps more encouraging to see that the cartel is spooked enough to roll out the poisonous Grattan Institute to derail the national interest.
Meanwhile, in QLD. The Australian.
Gladstone LNG is believed to be the frontrunner to buy the Meridian gas plant in Queensland’s Bowen Basin, which some estimate could sell for well over $600m.
Earlier, it was believed Westside Energy was selling its half share of the asset, but now it is understood the other owner, Mitsui, is also offering its interest on the market, which would result in a full sale of the business.
The two owners are believed to be self-advised, but RBC is believed to be close to one of the suitors.
Westside’s owner is China’s Landbridge Group.
Why would the ACCC allow GLNG to buy this asset? It will just ship all the gas offshore.
One more time for the dummies.
The problem is not a lack of gas or gas approvals; it is the existence of an export gas cartel that viciously manipulates reserves, volumes, and prices.
