You losers! That must be what the gas cartel is thinking as Asian LNG prices crater owing to oversupply:
Reuters is reporting that Asian LNG spot prices have now broken the US$5.00 per million Btu mark. A lack of growth in demand and continued high levels of supply have been the primary causes of the recent price slide which is now in its 13th week.
Asian LNG spot prices for May deliveries reportedly dropped 80 cents this week to US$4.65 per million Btu. This marks their lowest level since May 2016 and is also not far off the record low for Asian LNG spot prices which dates back to 2010 (US$4.00 per million Btu according to Refinitiv Eikon data).
Europe usually trades at a premium to spot Asian LNG prices, however this is currently not the case as Asian prices are currently lower than the current price level of the European natural gas hub in Britain and the Netherlands.
The Australian export net-back price has now plunged to $4.80Gj. Yet the east coast spot market is going the other way, up 5% on last week to $10.50Gj. Hahhhahaha!
Gas is not only the key input price into local manufacturing, it is the key input price into east coast power prices for every household and business because gas sets the marginal cost in the national electricity market (NEM). Gas is always the most expensive fuel source in the auction bidding system that drives the wholesale power market and sets the price for all other fuel sources.
Meanwhile, a totally idiotic press is stuck in the political artifice of renewables versus coal driving price rises.
The first act of Labor in power must be to drop an anvil on the gas cartel from the highest available point using a toughened Australian Domestic Gas Security Mechanism (ADGSM) with a fixed price cap of $5-6Gj.
This national joke has gone on long enough.