Defence orders marshmellows as gas disaster locks in

Via Matthew Stevens:

The fate of Incitec Pivot’s gas-challenged Gibson Island urea plant near Brisbane looms as an early challenge for whomever our returning prime minister, Scott Morrison, gifts with the resources portfolio.

…She called out that efforts to secure new gas supplies at a price low enough to re-secure the economics of the company’s ageing urea plant were continuing. But Incitec’s boss then spoke more actively about plans to mitigate the potential ammonia shortage that Gibson Island’s closure might generate than she did about the potential of a successful outcome of those gas supply negotiations.

…The portents are not good for a plant that directly employs 450 people and has become one of the touchstones of the occasionally frosty debate between Australian manufacturers and our gas drillers.

We don’t need explosives, anyway. We’ll just fire marshmellows at the PLA. Or do you need gas to make candy too?

The ACCC doesn’t care:

The ACCC will not oppose Australia Pacific LNG’s (APLNG) proposed acquisition of the Ironbark coal seam gas project from Origin Energy (Origin).

APLNG is a large gas producer with significant gas tenements in eastern Australia. It supplies almost 30 per cent of the gas going into the east coast market, and processes the balance of its gas for export at its LNG facility near Gladstone, Queensland.

Origin is a 37.5 per cent shareholder in APLNG and is the upstream operator for APLNG, responsible for the development of its CSG fields in the Surat and Bowen basins and the main transmission pipeline that transports the gas to the LNG facility near Gladstone.

Ironbark is an undeveloped coal seam gas permit held by Origin, located in the Surat Basin. It has expected reserves of around 129 PJ of 2P reserves, which is approximately 0.34 per cent of total eastern Australian reserves.

It could feed Gibson Island for nine years but no. Ship it out!

And worry not because Twiggy is coming to the rescue:

Andrew Forrest’s planned LNG terminal in NSW has opened talks to strike a five-year $500 million-plus supply deal with utility EnergyAustralia as it works to lock in customers backing the nation’s first gas import plant.

EnergyAustralia, one of Australia’s big three power retailers, is in final talks for a contract to buy up to 15 petajoules of gas from 2021.

For my own mental health, it is time to give in. Abolish domestic reservation and lift the gas price to import parity now. Arm the ADF with caramel buttons.


  1. Seems like corporations and politicians are eating the Australian people alive…and each party thinks it’s all a good thing, you just have to look at it a certain way, regardless of actual, empirical outcomes…

    It’s nuts; truly, actually, self-deluded nuttiness.

    Hey, wait!! We can fire nuts at the PLA! We have lots of nuts…

    • Strange Economics

      I worked there for a short period.
      Its a fertilizer plant, not an ADF plant.

      Its a great example of Oz adding value to local natural resources, up the chain.

      Supposed to be a good idea right.?

      Not if gas for ammonia is half the price landed in China or Japan. Because the gas companies got open slather?
      So now Move the plant there and import ammonia fertilizer back?

  2. Stewie GriffinMEMBER

    For my own mental health, it is time to give in. Abolish domestic reservation and lift the gas price to import parity now. Arm the ADF with caramel buttons.

    That’s okay H&H – I use to argue vigorously for the reform of Negative Gearing and the abolition of Franking credits and the taxing of Superannuation…. but then I realise that the extra money I was going to be paying in taxes wasn’t going to help my fellow Australians, but help facilitate the importation of more immigrants, which would actually work against the interests of most Australians. If I care about young Australians, then I can best help them by helping my own kids.

    Now, resigning myself to the status quo, I’ve learned to stop worrying and Love the Bomb – these objectionable tax policies that are economically unfair, at least tilt the favor slightly towards existing Australians, and that is enough for me.

    Every man for himself now that we live in this Multicultural paradise in the economic zone formally known as Australia.

    Just buy shares in our Gassers – they’ll be doing big business now and in the future. Everyone’s a winner that way.

    PS: In a couple more years you won’t have to worry about requiring an ADF, no existing Australian will be prepared to fight for all those other individuals and cultures they despise in this economic zone anyway…. if needed maybe we could outsource the fighting on our behalf to Indonesians?

    • You mean a drone army, drone navy and last but not least drone air force. Just sit back relax in the command centre and drive it like Nintendo or PS 4 or XBox. 🙂

      • HadronCollision

        except the majority of drone market is Chinese*, so maybe not so much
        *as I understand it

      • Stewie GriffinMEMBER

        “You mean a drone army, drone navy and last but not least drone air force.”

        You are kidding aren’t you – drones are far more expensive than Indonesians, just ask McDonalds.

      • Droning on - hacked drones..?

        And if you use a network with a back door supplied at a low price from China, then the drones won’t fly that way at all…

      • Can always assemble in Australia with a rigorously vetted imported parts and sub-systems. Hey it is only money, tax payers’ money that is. You want gold-plated ones then develop the software locally, else use open source after a code review.

    • I’m with you Stewie. Arguing for what’s “right” is for losers (losers).

      Better to read the writing on the wall and profit from it.

      • Stewie GriffinMEMBER

        What is right is taking back Australia – Australian for Australians #A4A

        Why support policies that not only hurt you financially, that are transferring your resources to supporting policies that are destroying our society, culture and nation.

        I no longer have any intention or desire to support any reforms that will directly or indirectly help facilitate foreign cultures entering Australia or assist them in projecting their values forward from within our nation.

        Anything that assists immigrants or immigration, that takes place under the current policy settings, is wrong.

  3. A profound national advantage squandered. The gas volumes going to the chillers towers over domestic consumption. WA has gas reservation, brought in by conservatives. Can’t do it in Eastern Australia because markets.

    Don’t give up HnH. Too few are prepared to speak out against this obscenity.

  4. Pity Labor don’t just say they will implement domestic reservation … if they ever get back into power!