Gas cartel gouges gleefully as Asian prices crash

Via Reuters:

Spot prices for March delivery to Asia LNG-AS this week fell to $7.00 per million British thermal units (mmBtu), down $1 from the previous week, lowest since April 6, trade sources said.

They are also seasonally at the lowest for this time of the year since 2016, Reuters data showed.

This translates to roughly $10Gj. Oil-linked contract prices are similar.

East coast gas prices are currently sitting right on $10Gj when they are supposed to be benchmarked to export net back which is about $2Gj lower under the terms of the ADGSM. It has been this way for several months now.

In short, Aussies are currently paying the same price for their own gas as the Japanese, Chinese and anyone else that cares to buy it, as well as paying the resulting higher power costs with forward curves climbing steeply (given gas sets the marginal cost electricity in the NEM). All to subsidise Asian industry and households.

But such national economic insanity is not worthy of reporting. Back to worrying about who is a racist.

Comments