On Transparency International’s Corruption Index, Mozambique ranks 158 out 180. Australia ranks 13. Yet this:
Africa is taking the lead in the next phase of global LNG mega-projects. 2019 will shatter previous records for the industry.
Rystad Energy forecasts that LNG greenfield investment in 2019 will reach nearly $103 billion, the biggest investment year for the burgeoning industry to date.
Aussie LNG is done. There may be a few brownfields developments but that’s all. We’re priced out.
But that is not my major point. With all of this development for export what has hideously corrupt Mozambique done to ensure it does not leave itself short of energy? This, from ICLG:
How is it that monstrously corrupt Mozambique has a massive LNG boom and plans to supply cheap gas-fired electricity to nearly half of the nation via strong domestic reservation?
And why is it that Australia, which ranks just 13 on the corruption index, can’t apply gas reservation to prevent an LNG export cartel from rorting $15-20bn per annum from the entire east coast economy for fear of “sovereign risk”? Based upon LNG, our true place on the index is last.
But there is hope, via New Daily:
Centre Alliance Senator Rex Patrick told The New Daily he was confident the tax cuts could be voted on this week.
The price of the agreement is a range of measures, including limits on future gas exports and greater transparency on existing deals.
“They were alive to the issue of gas prices. They will announce those over the next couple of months,” Senator Patrick said.
“(Resources Minister) Matt Canavan has already foreshadowed that the government is looking at a gas reservation policy. That would be prospective.
“I’ve talked about how you deal with current projects.
Mr Patrick said the government had to wrestle with how any limits on gas exports would comply with free-trade obligations so they were not “unlawful”.
“We have to comply with world trade obligations. That constrains the government in terms of what it can do,” he said.
“We will meet Mathias Cormann either Monday or Tuesday to try and finalise what we have been doing remotely.
“Do I think we will end up with any roadblocks? I can’t see any. I think we can get there, but the devil is in the detail.”
Senator Patrick said he was not going to speak for Tasmanian Senator Jacqui Lambie, but she supported the gas reforms.
“She’s already indicated publicly she’s supporting what we are doing on gas. She was also concerned about gas prices,” he said.
With respect, laws were made to be broken. Let’s see what comes.
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.
Latest posts by Houses and Holes (see all)
- Mark Latham destroys NSW economic blueprint to nowhere - November 21, 2019
- Moody’s dumps states onto downgrade watch - November 21, 2019
- Tin-eared Scummo meets cricketers but not fire chiefs - November 21, 2019