The gas goons are on the run. Reuters.
At a conference in Sydney, Australian executives of Shell (SHEL.L), opens new tab , ExxonMobil and Chevron (CVX.N), opens new tab pushed back on the coalition’s proposal, arguing more government intervention would hamper the development of gas supply.
These people are like a broken record. They will do as they are told if the government is firm enough.
Rystad makes an unwelcome intervention. The Australian.
The Coalition’s proposal to deliver gas from Queensland into Victoria for less than $10 a gigajoule is not sustainable in the long term due to pipeline constraints and the difficulty of redirecting LNG spot cargoes, independent research company Rystad Energy says.
Rubbish. The LNP is including $1bn for pipelines, and APA has a $2bn proposal to gold-plate capacity south from QLD if we want to.
Frankly, it’s not even needed. The southern pipelines are idle most of the year. More storage in the south would fix it, filled in in the off-season.
You know, like all mature nations do.
Let’s not forget that it was Rystad that helped AEMO price East Coast break-evens a few years ago. $10Gj is a boom!
It was also Rystad that declared the NEM the world’s most volatile electricity system a few years ago.
Volatility is driven by significant supply issues, including unplanned coal power plant outages or transmission line problems caused by natural disasters such as cyclonic winds or bushfires, which have become more frequent and devastating in recent years. Extreme price fluctuations are also down to high solar power penetration. While daytime generation is high, pushing prices down, elevated natural gas prices are causing soaring rates in the evenings and at night when solar generation falls and gas-fired generation is needed.
But now we shouldn’t fix it? Pull the other one.
The treasonous ABC gas goon has found a new angle of attack.
Mr Dutton’s plan may also expose the Australian government to damages claims from foreign investors under trade agreement rules that allow “negatively affected” players to recover “lost profits”, said ANU law associate professor Emma Aisbett.
“The ex-post imposition of a domestic gas reservation will reduce the profits of gas producers,” she said, noting the changes mean producers would be forced to accept a domestic price that is lower than world prices.
Then just fine them more to pay for it. They’ll buckle soon enough. Australia is a “sovereign nation”, after all, and can make its own laws.
One would have thought the publicly funded Australian Broadcasting Corporation would understand that.
