Another creditable effort from the the ABC’s The Business last night on the east coast gas crisis, which touches on a number of aspects of the debacle including the pros and cons of the NEGI:
The only point I would add is that although manufacturers are certainly in the gun here, one should not underestimate the impact of rising gas prices on households. Higher gas prices may be manageable but the impact is amplified because gas generation sets the marginal cost of electricity in the NEM so rising gas means rising electricity as well.
The current east cost spot gas price is roughly USD5Gj while in Japan the same gas is $5.70Gj:
But for most of the market it is much worse with contract prices at anything up to $10mmBtu here versus $6.40mmBtu in Japan.
