Australian LNG is a one trillion dollar heist

The Asian gas spot price has now cratered to $6.90Gj. Based on the current Australian Domestic Gas Security Mechanism (ADGSM) that should have the domestic price at roughly $5Gj. The east coast gas crisis should be over.

Instead the spot price is at $9.50Gj while the Government and ACCC do NOTHING to enforce their own agreement with the gas cartel. Why?

Because “the market” is coming to the rescue, via the AFR:

…the news, first reported on Wednesday in The Australian Financial Review’s Street Talk column, that EnergyAustralia has signed on the dotted line to take at least 15 petajoules (PJ) of imported gas lands both a resounding reinforcement of the iron ore legend’s foresight and, even more importantly, of the commercial logic that fathered the import project.

The project in question is owned by Australian Industrial Energy, a vehicle half-owned by Forrest’s privately held energy business, Squadron Energy, and two very large and influential arms of Japan Inc, JERA and Marubeni.

…AIE has never claimed it would be the bearer of cheap gas…From day one the project proponents have floated landed gas prices of $9-10 a gigajoule (GJ) as a starting point for discussions.

Yet were the ADGSM simply enforced today the price would be HALF that. That price could easily be embedded in the mechanism permanently. Asia simply does not need all of that QLD’s gas, now or ever. JERA and Marubeni are two huge buyers of Australian export gas, only to sell it straight back with mark-ups.

The LNG export disaster has been a swindle from the get go, siphoning some $20bn out of the east coast economy to gas and power firms via collapsed market structures. Piling an LNG import cartel on top locks down the heist such that it will now be $20bn per annum forever, even without price rises. Over twenty years let’s call it $400bn. Add interest and it is a one trillion dollar heist.

It is the single greatest theft in the history of the world.

From you.

David Llewellyn-Smith
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Comments

  1. But loads of ex-politicians sit on the boards of the gas companies, supplementing their pensions.

    So it is s trillion dollar heist from Australia, but a few million in the pockets of those who make the laws.

  2. Stewie GriffinMEMBER

    It would be racyst to preference the interests of existing residents in the economic zone formally known as Australia, over the interests of future potential citizens currently residing in the rest of Asia, who might benefit from access to our cheaper gas.

    No culture is superior and as Multicultural citizens of the world, it is abhorrent to think that anyone would support policies that favour a predominantly white nation in South East Asia over equally deserving global citizens in the rest of Asia.

    Until Australia’s ethnic diversity precisely mirrors the rest of the world, any policies that favour the local population over the rest of the world are bigoted, racyst policies founded in toxic whiteness.

    • Ronin8317MEMBER

      The Asian buyers are not benefiting much: they are paying the global spot price after all. It’s just that Australians are getting ripped off.

      • Stewie GriffinMEMBER

        That “rip off” represents and unearned advantage over other global citizen residing within Asia.

        Global Market forces have decided Australia’s LNG price and so any policies that preference or favour the local population over the rest of the world are bigoted, racyst policies founded in toxic whiteness.

        Just buy shares in our LNG companies – that way you can be sure that your investment returns are ethically sound, determined by market forces and free from any potential biases or privileges from living in a predominantly white society, which lets face it, simply stole all that LNG from the Indigenous people of Australia in the first place.

        We’re Earthlings now above all else, that is who we are.

  3. I’m sorry, but that really sucks coming into winter for households. DO they want to speed up the total collapse of any manufacturing as well?

  4. For change to occur, maybe we need Michael West to have a look at all who may benefit from such an arrangement?
    The inertia of this thing is huge, representing a lot of vested interests wanting it to remain as is.

  5. John Howards Bowling Coach

    The only solution to this is to keep hammering a fact based message harder and harder into the main stream media. My suggestion is a social media campaign to get all the Aussie Sheeple to start spreading the world around their networks. Only once the message is too big to refuse will commercial media pick up a message that is going to hurt their paymasters BUT the fact is all Australians need to get a simplified version of the reality of the gas scam so they can act with their feet and pressure the government over and over and over again

    • Yes, astonishing. I suspect that the populace finds this far too complex and so brainwashed that it blames non-players (such as the Greens) rather than the culprits. Is a manufacturing industry class action feasible?

      • John Howards Bowling Coach

        That’s a thought. One of the high profile ambulance chaser corporations would love to ponder that concept, a class action against the Gas Cartel on behalf of the Industry of Australia being crippled by the above global market pricing.