The LNGers get such an easy run considering the economic black hole they have unleashed. Via Domainfax:
Gas producer and exporter Australia Pacific LNG has promised to significantly boost the supply of natural gas to the domestic east coast market, after striking a sales agreement with major shareholder Origin Energy.
APLNG, a joint venture between Origin, US giant ConocoPhillips and China’s Sinopec, said it would supply 41 petajoules of gas under a 14-month contract starting November 1.
The contract brings the company’s total commitment to 186 PJ for 2018, representing almost 30 per cent of Australian east coast domestic gas market demand.
These commitments come after the Australian Competition and Consumer Commission last month forecast of a gas shortfall of between 54 petajoules for 2018 and 48 petajoules in 2019.
The interim report led to calls from consumers, industry and agriculture to immediately divert gas slated for export and reserve it for domestic use, and prompted the government to threaten to pull the trigger on its controversial powers to limit gas exports.
Instead, Australia’s three major gas producing companies – Origin, Santos and Shell – agreed to commit greater supplies to the domestic market to ensure the shortfall was met.
Who cares. At what price? If it’s not cheap then all they are doing is expanding the gouge. This is why the reservation mechanism is useless. It should insist upon volumes meeting a price.
Frankly, why stop at export net-bank? Make it $5Gj.
