NSW Labor’s idiotic stance on gas

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Via the AFR:

NSW Labor says it does not believe assurances from Santos that all gas from its proposed Narrabri gas project would be sold to local industry, rather than exported, doubling down on its pre-election declaration that the $3 billion development is ‘dead’.

Defying the Australian Workers Union support for the project to reduce NSW’s 98 per cent reliance on imported gas, the State opposition’s resources spokesman Adam Searle said Santos’ support for a gas pipeline that would link the Narrabri field into the existing pipeline system signalled the gas would likely be exported through the Queensland liquefied natural gas operations, whatever the company says.

“The pipeline they are proposing for this gas will still enable them to send it to the gas export platforms in Queensland. I think that means they intend for the gas to be offshored,” Mr Searle said.

NSW Labor is right not to trust STO but that is easily solved. Just force them to sell the gas locally via domestic reservation. Sadly it won’t drop prices much given it is high cost but it will help cap the gouge.

This appears to be consistent with Michael Daley’s strategy for everything. Promises to all and damn the lifeboats. He’s upset by foreign workers displacing locals but apologises for it. He is against development and infrastructure but for mass immigration. He wants STO gas but just won’t have it.

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In short, the Daley Opposition has no backbone.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.