Here comes the east coast gas shock

Thursday, 9 April 2015

The AFR has details of a new gas deal struck this morning:

AGL will have an extra 30 to 50 petajoules a year of gas to sell into the “high value Queensland market” after it agreed to buy 198 petajoules from Bass Strait joint venture partners BHP Billiton and Exxon Mobil.

…The BG takeover is expected to take the biggest source of uncontracted coal seam gas in Queensland (Shell’s Arrow Energy venture) off the market, so AGL has opportunistically moved to present itself as a potential supplier of third party gas to the Gladstone Lang facilities run by Santos and Origin Energy.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.