Hey Scummo, where’s the new gas reservation policy?

It’s fun to watch Asian gas prices, via Bloomie:

The latest bad news for bulls came this week, as China National Offshore Oil Corp. bought a liquefied natural gas cargo for early September delivery to China at about $3.90 per million British thermal units, according to traders with knowledge of the transaction. The region’s benchmark price, the LNG Japan/Korea Marker, briefly touched $4 per million Btu in April 2016, but hasn’t dropped below that since 2009.

But it’s not so much fun here. Aussie prices should now be around $4.50Gj according to the conditions of the Australian Domestic Gas Security Mechanism (ADGSM) deal. Instead they at $8.67Gj, more or less double:

The gas cartel is, of course, printing money, via AFR:

Origin Energy reaped a bigger-than-expected $943 million payout from its Australia Pacific LNG venture in Queensland last financial year, fuelling expectations of a faster paydown of debt and an increase in dividends.

Higher export and domestic gas prices and lower capital spending at APLNG drove the bumper cash payout to 35 per cent owner Origin for 2018-19, easily beating Origin’s guidance of $850 million.

Export more and produce less! That sounds like a nice way to artificially gouge the local market.

Which, as we know, has also caused your power bill to spike given gas sets the marginal cost of electricity in the National Electricity Market (NEM):

Hey Scummo, where are your new gas reservation policies?

Comments

  1. HairyMaclaryFromDonaldsonsDairy

    Scomo is probably a Director of Origin……surprised he’s not a Director of Crown Casino’s too.

    • Surely half the government are STO shareholders… how else could one explain their treasonous behavior /

      • Yes, 30 days. It’s the gas ducted heating that does it. Every winter. Can’t install solar, etc. as it’s not my house.

    • Seriously though, you need to split with the utility company, install 9kg swap and go cylinders for your cooking needs and run a solar HWS… boost it during winter using gas if you need to.

      unless you’re in WA, gas via a utility company makes no economic sense…

  2. Ronin8317MEMBER

    There is no need for action, as there are no shortage of people who still think energy price is rising due to the carbon tax,and it’ll be solve when we build more coal powered electricity plants.

  3. Talking to a tradie today (blue singlet, work boots, lives in Humpty Doo – yes, its a real place)

    Conversation was about the boom/bust nature of the NT and how little of the work for the Inpex project benefited Darwin. He said the Fed gov should have built it and then followed up with this “Do you know that Australia only has 2 weeks of gas reserves?” in an outraged tone of voice.

    Now this is a bloke that works 15 hour days. He does this because he’s cheap and he’s cheap because he needs the work and his mortgage is $1800 a fortnight.
    The fact that a guy from the bogan-est part of an obscure little town and has no free time is aware of this shows how important it is to the average punter.

    Australia should be self sufficient for gas and energy but our government insists on doing things the dumb way.

      • Rural block and house – said he paid about $585K for it.

        I don’t know why people tell me these things. It was a quick convo over the fence. I must have one of those “spill your guts, I want to know everything about you” faces.

    • Tradie is talking RUBBISH!

      Fact is, Australia has several hundreds of years worth of gas reserves, based on all current and imaginable domestic requirements… The issue he’s trying to articulate is why are we Aussies paying through the nose for something that is so abundant and readily available here, while our federal government permits large foreign-owned companies to export it for mega-profits, thus creating a local supply/demand imbalance… sigh

      • no, that was precisely his point, that and the fact that we have the gas but are beholden to others for something we should own.