Japan screams laughter at huge discount to Aussies on their own gas

Yes, it’s gas cartel gouge time once again. After the treasonous ACCC did nothing again yesterday on the gas market, the cartel is making hay charging Aussies $11Gj spot prices across the eastern seaboard while Asian prices are in the $9Gjs. Meanwhile, according to the disastrous ACCC, contract prices are:

…offered and agreed in mid-2018 for supply in 2019 ranged from $9/GJ to $12/GJ. By August 2018, most offers to large commercial and industrial gas users were at, or above, the mid-$10/GJ level, including some offers above $12/GJ.

Yet, as global oil prices crash, Japan is today paying $8.50Gj for contract gas.

Given we’re supposed to be paying export net back prices under the ADGSM, the local contract offering price should now be around $7Gj not $10-11. In short, even under the ADGSM today we are paying 50% more than we agreed under Malcolm Turnbull. And we are paying roughly 25% more than the Japanese for the same gas coming out of our own backyard.

Suddenly LNG imports make sense (only joking).

We need stronger domestic reservation right now with a fixed price target of $5-6Gj. There’s a flood of gas but the cartel is throwing it all offshore at Asian customers that are laughing their heads off at stupid Aussies. Simple as that:

Comments

    • Quite so, but that would require politicians that have a clue. Australian politicians couldn’t get a clue if they were given the keys to the clue factory. Plus they are easily marks for bribes.

  1. Men are from Mars, women are from Venus and our policy makers and regulators are from another dimension entirely. You’d laugh about it if it wasn’t such a socially destructive situation.

  2. Didn’t French yellow vests started as a protest on taxes and gas/petrol prices? My guess is we are too busy here making money on RE investments to care about price of gas. After all Asians are inferior race so they need head start. Otherwise Japan’s manufacturers won’t be able to compete against ours.

    • No the yellow vests in France are protesting the sellout of their country – immigration and loss of sovereignty etc. The mainstream media are telling lies to normies who believe it. The redpilled know the truth.

      Yes, Aus is fixated on flipping used / second hand houses.

  3. Just an observation on the migrant guestworkers and their preferences and buying behaviour in gas usage.

    We have onshore 2.7 million migrant guestworkers (2.2 million TR plus 440k migrant tourist/visitors working illegally at any point of time & 65k Overstayers).
    Almost all (98%) are renting and crammed into some in 550,000 or so ex Australian modest established dwellings that are now mostly foreign owned.

    86% in Sydney & Melbourne.
    🔹1 in 4 people in Sydney (1.3 million).
    🔹1 in 5 in Melbourne (1.0 million)
    400k elsewhere.

    Crammed into ex Australian entry level or very modest established dwellings, now foreign owned, bought with dirty money laundered via a proxy & then rented out to migrants only in ethnic alignment.
    Sublet & cash in hand.
    3 or more migrant families or 8 or so foreign students in a 2 bed unit, or small old run down house out west.

    Gas.
    They usually disconnect the mains gas, (because of the exorbitant line connection & service charge as well as the gas MgJ cost – and they set up 3 or 4 of those little campfire gas cookers inside the now partitioned bedrooms & living spaces.
    So the master bed room (4 or 6 bunks plus 1 sleeping in the bottom of the wardrobe is not unusual) & a gas camping stove / rice cooker. Same in the 2nd
    bedroom (4 bunks) and another in the lounge along with a couple of mattresses & even bunks in the internal laundry if it has one.
    (They all use the showers & toilet at the shop if Asian or at the 711 / Caltex or customer cleaning site if Indian).

    Similar in those old run down 2 bed Aussie fibro in say Granville – divided into 3 or more zones, plus a zone in on lean to & one in the garage etc to fit 10 or more migrants in. All with their own little rice cooker & camp stove cooking zone.

    The ‘deal’ in the migrant guestworker accommodation is $160 to $185 a week for a bunk & bag of rice, gas cartridge & toilet rolls plus communal wifi.

    Everywhere on gumtree or migrant websites.

    Gas cooking.
    They use those gas cartridges.
    Buy them at Coles or Woolworths / BigW etc in a pack,
    About $3 each ? & good for 10 or so Wok meals or curry cook-ups.
    You will see the proxy owners buying the bags of rice, toilet rolls & gas cartridges in bulk.
    Usually Chinese, Indian or South East Asian, often an older male or female (PR), their wallet stuffed with hundred dollar notes.

    That’s the PR money mule, who washed the foreign syndicate dirty money into the housing purchase & may even live in as the ‘manager’, but is certainly not on the lease. Often have multiple properties in laundering in the dirty money & running the cash in hand sublet.
    He or she will be collecting $1,200 -$1,500 cash a week in sublet per dwelling from the migrant guestworkers, but is only declaring $500 / repays the syndicates & takes a cut plus collects the negative gearing as a kicker.

    And they do the shopping to buy the rice, toilet rolls & gas cartridges.
    -/-
    Anyway the little gas camper stoves are mostly made in China.

    And the gas cartridges are usually made & filled in Korea.

    So probably Australian steel & gas exported and manufactured & filled there, then exported back.

    All cheaper than using local mains gas.

    This is how 1 in 4 people in Sydney live.
    And 1 in 4 in Sydney don’t use mains gas even if they have the connection.
    They buy Chinese camp stoves & Korean gas cartridges.

  4. AGL has just announced a 10 year deal with Hoegh LNG to lease a FSRU vessel to import LNG into Victoria at Crib Point – subject to AGL Board final investment decision. Why would Premier Daniel Andrews allow LNG to be imported from QLD or WA and raise gas prices for Victorians? Maybe AGL wants to import gas for its gas-fired power stations? See here: http://news.cision.com/hoegh-lng/r/hoegh-lng—hoegh-lng-selected-as-the-fsru-provider-to-agl-s-crib-point-lng-project,c2705453