Gas cartel rogers AFR crack whore

Via Nick McKenna, CEO of APLNG and gas cartelier, at the AFR:

As government and LNG producers renew discussions to extend the heads of agreement that assures domestic customers of access to gas, we must not let emotive calls for subsidised prices triumph over reason.

It is well documented by both the Australian Competition and Consumer Commission and the Australian Energy Market Operator that the domestic gas market is well supplied, and wholesale prices, already well below our Asian neighbours, have continued to trend down.

…Australia Pacific LNG is proud to have been a major supplier to the east coast domestic market since its inception, meeting around 30 per cent of total demand…A recent International Gas Union survey showed the average wholesale gas price in Australia last year was around 40 per cent less than the average wholesale price for the Asia Pacific region…

The chutzpah is something to behold. Here is the International Gas Union survey. Australia looks bad for a gas producer but OK for a gas customer on about $5.80Gj:

But, what the good cartelier fails to mention is that this includes plentiful WA gas, which is a separate market kept cheap by domestic reservation at around $4Gj. WA accounts for 40% of domestic consumption so if we adjust that for the east coast then we get $8.70Gj:

Given we have to subtract $1.50gj for liquefaction and shipping from north Asian prices to make the comparison fair, the gas-rich east coast of Australia is paying more for its own resource than everyone bar Taiwan. It is paying anywhere from more than double to ten times other gas producers.

It is one thing for the cartel to compose these lies while berating objective commentary for distorting the facts. Such corporate bastardry is commonplace in subaltern Australia today. It is another thing for the AFR to print it. Which, I might add, didn’t even give the story a byline so that Nick McKenna, blood-sucking cartelier, instead looks like some innocent observer:

Even for a former great paper turned corporate shill this is a new low in debased journalism.

There is no doubt that there is enough cheap gas to supply the east coast at $4-6Gj. The problem is it would require Nick McKenna’s gas export cartel to write off more misallocated billions from its LNG white elephants. Which is exactly what would happen if there was any market left to force it.

But there isn’t. So, instead, the cartel exports the cheap gas to Asia and applies discriminatory pricing to the expensive stuff for locals, to bail out its failed investments.

And for this economic crime against Australians, it is now protected by the Morrison Government’s ludicrous gas unplan, as well as the corporate crack whore of old business media.

David Llewellyn-Smith
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Comments

  1. “But there isn’t. So, instead, the cartel exports the cheap gas to Asia and applies discriminatory pricing to the expensive stuff for locals, to bail out its failed investments.

    And for this economic crime against Australians, it is now protected by the Morrison Government’s ludicrous gas unplan, as well as the corporate crack whore of old business media.” + 1000

    Also, that’s a headline I can live with and giggle all day about.

  2. Stewie GriffinMEMBER

    I watched that stoopid Shaun Micallef mad as hell last night (briefly), he was doing a rant against Gas producers in Australia, fair enough, but the gist of his argument and criticism was that Aust is still investing in Gas rather than renewable and that was the source of all Aust’s energy problems.

    Wifey, who is normally mindful of making any political or economic comments that might trigger a rant, then surprised me by launching into a rare rant by herself that he was completely ignoring the fact that Australia doesn’t have an energy reservation policy. I offered to change the channel and she agreed. I was so proud.

    • LOL – “Wifey, who is normally mindful of making any political or economic comments that might trigger a rant,” this is my wife to a tee.

      • its an East coast problem to be sure, but a large one at that and one that permeates through every corner of the economy…

        Having a separate market in the West with a successful domgas reservation policy should be enough to highlight the deficiencies with the East coast market, but it seems something more is required to point out the real act of federal treason that it is & bring this into mainstream… hopefully COVID can somehow turn out to be this little something more that can ultimately trigger reservation

        • Stewie GriffinMEMBER

          Hey – you suffer from the same problem I do!

          The work MB does in respect of the Gas rort and the awareness it creates in the public is worth the subscription alone. Austs gas policy is like running a fire hose of fresh water into the ocean during a drought and telling everyone that once it is full up then they’ll be able to water their lawns. A complete disgrace, and a plague upon both parties and the media class for their deliberate corruption, obfuscation and ignorance of the issue.

          • Yeah, only idiots would think giving more of something to a oligarchy with a history of market manipulation would result in less market manipulation.

  3. I wish Angus was a steer .. on the back of a truck and driving through the gates of an abattoir.