Albo bashes gas cartel

Here it comes:

Anthony Albanese has set up a showdown with LNG companies after the consumer watchdog warned that gas exporters were putting jobs and businesses at risk from massive price hikes and ­record east coast shortages next year.

In a damning Australian Competition & Consumer Commission report released on Monday, cashed-up LNG exporters have been put on notice to plug a 56 peta­joules shortfall or face sweeping regulatory intervention.

Jim Chalmers said the report revealed “alarming features of the east coast gas market”, with LNG companies predicted to drive shortages of 10 per cent of domestic demand next year, despite banking windfall profits on the back of $70bn in exports over 12 months.

“(The report) projects a significant gas shortfall for next year unless gas producers supply more of their uncontracted or excess gas to the domestic market,” Dr Chalmers said.

“It’s critical our domestic gas supply is secure and competitively priced, particularly when households and businesses are under extreme pressure. The ACCC has raised concerns about the level of competition in this market, and I welcome its commitment to look into this and take enforcement action as required.”

The broadside from the Albanese government sets up a showdown with LNG exporters, after Australian Petroleum Production and Exploration Association acting chief executive Damian Dwyer pushed back against “recent irresponsible calls to intervene in our gas export market”.

The oil and gas lobby chief, representing companies including Santos, Shell, Woodside, Origin and Chevron, said record economic gains and international partnerships with key Asian nations must be considered before forcing LNG producers to divert resources into domestic markets.

…Describing the situation as “extremely serious”, Dr Chalmers said the government was preparing a swift response to the ACCC recommendations, including his request to boost monitoring of energy markets.

Put a $7Gj price trigger in a renewed ADGSM and send Damian Dwyer a nice card.

Houses and Holes
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Comments

  1. If he is smart he will start to build the political foundations for intervention coz the gas companies will fight with massive $$$$$ through the corporate media to protect their profits. Gotta have the politics sorted before you intervene.

      • 2023HomelessMEMBER

        Don’t think there would be a single MB reader that would want you to let up. you’re analysis has absolutely helped the media focus where it should. Well played.

        Just imagine. By early 2023, gas and electricity prices will be on their way down and slowly reducing inflation, after everyone had a short taste of the pain. The RBA will have overshot rates and popped the housing bubble. And Labor will be able to rest all the blame for all these economic problems at the feet of the LNP. Plus show actions so they can claim to have bought down inflation and interest rates, and stabilised the housing market.

        So for the next 10years….remember when the LNP were in power and they wrecked inflation, forced rates up, and lowered your house value? Don’t risk LNP again! Poor economic managers etc etc

  2. Or is it just jawboning, to get the gas cartel to lower prices a little in short term so they don’t actually have to pull triggers.

    $7 or it’ll be weak as my nona’s tea

  3. Atom Heart MotherMEMBER

    Put a $7Gj price trigger in a renewed ADGSM and send Damian Dwyer a nice card.

    How about a $5Gj price trigger, and a proposal to make it retrospective (with damages payable) to the start of the Morrison government?

  4. Looking forward to the Gas Cartel sock-puppets on this site to be *ACTIVATED!!!* and start spouting disinformation and propaganda… in 3..2..1.. and take it away!

  5. A similar situation prevails in the USA, which has become a massive LNG exporter, sending out 12 Bcf per day, mostly to Europe, where US gas is now the largest source as Russian gas deliveries dwindle.

    As a result, wholesale gas prices in the USA have risen from US$2/mmBTU in 2020 to as high as US$9/mmBTU recently.

    https://www.eia.gov/naturalgas/weekly/
    The Gladstone “cluster” should be told that no more long-term contracts are to be written and all uncontracted gas is to be offered to domestic customers. The alternative of a swinging tax on exports should be offered as an inducement. In addition, there are recently discovered and assessed gas resources in the Otway and Gippsland Basins, where the government could lean in to hasten development and assessment respectively, thus boosting supply.

  6. Isn’t the ADGSM about volume rather than price. The guidance on the gov website suggests it is but I have not read the Act. This is important as the gas sector could satisfy the availability issue but with high priced gas if a minimal amount of export restriction was imposed given the low levels of competition and transparency.
    I feel the second round of these issue will be key.

    • Yep. This is why they can’t move on it instantly. They have to wait for the accc to point out the problem and banging on the drums before we get anywhere.

    • Ailart SuaMEMBER

      “Why will our politicians not address this issue like Norway has?”

      Very likely due to our government’s ‘convict culture compliancy’ to ‘mother England’ rather than government’s compliancy to Australian citizens. Eighty percent or more of mining companies are foreign owned; a major portion by the UK. Follow the money.

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