AFR’s gas cartel war on Australia continues

The entire east coast is now enjoying a still high but much-improved gas price of $11Gj today as the export cartel goes the raw prawn with the political economy.

Power prices have dubifully corrected:

Meanwhile, the AFR continues its cartel propaganda war against Australia:

Returns over the life of Santos’ GLNG project in Queensland look set to average just 5 per cent a year, less than half the targeted amount, according to MST Marquee, in contrast to claims that gas exporters in Gladstone are raking in windfall profits.

Far from making super profits, Queensland’s three LNG export projects are now making earnings that only help offset previous losses and write-downs, energy analysts have calculated.

Yada, yada, yada. The writedowns derive from the original over-investment. They are not a virtue to be claimed just because there’s war in Ukraine.

The export cartel is making super-profits based upon war-profiteering to which they have no conceivable right. Including the excuse that they should never have invested so much, so poorly in the first place.

This is the policy equivalent of arguing that adding a catastrophic wrong to a calamitous wrong makes a right!

Put a $7Gj trigger into domestic reservation NOW and let the market sort out the rest.

Houses and Holes
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Comments

  1. The AFR is a media outlet of the 1%’ers and big business. They just put in a sports section and special interest pieces to appear to be in it for all Australians. Just like the LNP-ALP coalition, they don’t give a flying f….about the ordinary punter in the street. Life outside of Hotels, Boardrooms and Business Class Lounges is something to be gawked at….

  2. Fishing72MEMBER

    Let’s never lose sight of the fact that the ridiculously excessive construction costs for these plants were gamed to begin with. Like their WA counterparts, the aim was to use all nefarious accounting tactics to artificially inflate the expense to build these projects to ensure the claims against profits were so large that Evil Knievel couldn’t jump the figures in the Space Shuttle.

    I remember reading in the paper about the claimed cost blowout to a WA LNG project I was working on where they stated that a 3% increase to the pay packets of the 3000 person temporary peak workforce somehow equated to an extra $8 billion in construction costs*!None of these Numberwang figures were ever queried by the media or government. The rivers of gold were flowing and no one dared investigate upstream.

    These companies borrowed money from themselves via subsidiaries at extortionate interest rates before they’d even begun buying product to build from other subsidiaries at inflated prices. It was a circle jerk of rorting which allowed the companies to claim they’d bled from the eyeballs to create these plants so they could then cry poor unto eternity and never pay tax.

    It worked too because the size of the weaponised Capex claims are never put under the microscope.

    *Reality using extremely generous figures: 3000 person workforce needed for 3 years. Each person on aversion $200K per year. Extra 3% = $18M per annum. Over 3 years = $56M. Good luck stretching those numbers out to the billions….but they somehow succeeded and the non-FIFO dependent sectors of WA were outraged at the alleged potentially project-jeopardising greed of the workers toiling in 45 degree heat.

    The power of the media to pit social allies of the working class against each other is never to be underestimated.

  3. I made an investment mistake…so if I ever get the chance to fleece others to make up for it, then it must be my right to do so…

    Crazy, entitled and abusive talk.

    You screwed up, now wear it. Welcome to business.

  4. Just occurred to me if a journalist is reporting something as news which is really paid for comment, then its a breach of the consumer law to do so. I think I will make inquiries of the AFR about this and if upheld report to ACCC.

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