Via Bloomie:
The world’s biggest oil exporter is ramping up efforts to develop natural gas with plans for a 15-fold boost in output from unconventional deposits of the fuel.
…“We are looking to take our unconventional gas within the next 10 years to 3 billion standard cubic feet a day of sales gas,” Nasser said on Sunday. Aramco currently produces more than 190 million cubic feet of unconventional gas daily, all of it in the remote north.
“For the first time ever, we will be exporting gas either by pipeline or as LNG” – or liquefied natural gas, Nasser said. “For gas, we will be a major player.”
Saudi produces roughly 84mtpa of LNG equivalent now. It plans to expand that to 150mtpa, much of it for export. It is also investing in Russian LNG to expand its output by 20mtpa.
This is great news for eastern Australia. Given the east coast gas cartel actually withdraws income from economy thanks to its gouging of gas and power markets, cheaper Asian prices will dramatically lower our prices once Labor enforces and strengthens the ADGSM (assuming they are not completely stupid).
Meanwhile, the NSW government is committing energy suicide, at the AFR:
The Andrew Forrest-backed Port Kembla LNG import terminal in NSW is facing its biggest test, with domestic gas customers to be asked to ink long-term purchase deals within the next six weeks now that the project has won planning approval from the state government.
The $250 million Australian Industrial Energy venture is the first of five competing projects around the south-east coast to get the green light from government, paving the way for Australia to start importing gas just as it has become the world’s biggest LNG exporter.
My advice to customers is DO NOT SIGN. Even today, with Asian gas prices cratered at $7Gj, imported gas will arrive at about $9Gj, the same price it can be bought on the local spot market. And when the AUD falls further ahead with bulk commodities, imported gas prices will skyrocket.
Well done NSW Government, blocking gas development across the state and embedding a pro-cyclical gas and electricity price shock forever. One would be hard pressed to fuck up energy policy that badly even if it sat down and really thought how to do so.
Instead, gas customers must pressure the federal Labor Government to enforce and strengthen the ADGSM with a net back formula that includes LNG capital costs and a fixed $6Gj local price cap.
Voila! All energy problems solved with the stroke of a pen.
