Truly we are living in an alternative universe now. The AFR is one of the chief authors of the fantasy:
Santos will have to satisfy independent commissioners that have form in rejecting coal projects in NSW on the grounds of their long-lasting environmental impacts and strong community opposition to push ahead with what would be the state’s first major gas project.
As the members of NSW’s Independent Planning Commission scrutinise the key issues raised in the almost 23,000 objections to the $3.6 billion Narrabri project over the next 12 weeks, alternative options to fill a looming shortage of gas within four years are also mounting, increasing the commercial challenge.
…The dream of NSW’s own rich gas resources feeding a flourishing and competitive manufacturing sector, cleaner power generation and efficient household supply is no flash in the pan – but it may still be some way off.
…Now, after the underperformance of Queensland coal seam gas, less-than-expected drilling and a forecast drop of more than 35 per cent in supply from southern fields in the Bass Strait in the next five years, importing gas is seen by many as the only option to satisfy demand on the east coast, where a large chunk of resources is already committed under multibillion-dollar, high-priced contracts with Asian customers.
Here is the extent of the balderdash in that one, short paragraph:
- the IPC has already been nobbled after lobbying by the Minerals Council among others;
- this follows last week’s exempting of Narrabri from 16 conditions for safe gas extraction by the NSW Chief Scientist. Santos is now free to dump millions of tonnes of cadmium-rich toxic salt into NSW water tables;
- “The dream of NSW’s own rich gas resources feeding a flourishing and competitive manufacturing sector” died long ago. STO will deliver gas at $10Gj into Sydney from Narrabri, 400% higher than historical rates. It will be even higher if there is no new competition because it will export even more outside of the Narrabri resource;
- Asian gas prices have cratered and “high price contracts” are falling daily as customers exploit the glut. They used to be linked to Brent oil at 15%. Today you’ll be lucky to 8-9%. That means Aussie gas is going to Asia in volume at $5Gj today, half local contract prices.
- LNG imports are absurd. But at least they will benchmark the local price to Asian contract and spot prices so we don’t pay more than our customers for our own product, which is what we’re doing right now and will continue with Narrabri.
The only solution for cheap gas is tougher domestic reservation. There is a deal for it between Centre Alliance and the Morrison Government in return for $158bn in tax cuts but where it has gone is anybody’s guess.
Into the Strayan toxic cocktail of the truly stupid, corrupt and broken.
