The Aussie energy market is marking time today as the gas price bounces around in the $15-20Gj range while one Curtis Island train is offline until Sep 4. The electricity prices is still very elevated:
JKM was pulverised yesterday so that’s something. Yet it is still indicating an Aussie gas price of $100Gj ahead when the LNG export train reopens:
Resources Minister Mad King is on the hustings making no sense whatsoever:
Resources Minister Madeleine King has personally assured Japan’s ambassador of the reliability of future LNG exports, should the Albanese government pull the gas “trigger” to ensure adequate domestic supplies.
Ms King told the ambassador she had yet to decide whether to pull the gas trigger – which would divert exports to the domestic market – but either way, Australia would remain a reliable supplier of energy.
Afterwards, Mr Yamagami tweeted a picture of the pair with the caption to report he was encouraged.
It’s marvelous to see the Mad King being so reassuring to our Japanese friends while she mulls whether to utterly destroy the Australian economy with 30% inflation, a 10% cash rate, and the second Great Depression as $100Gj gas prices land in Australia:
Australia’s energy market operator has dramatically brought forward the timing for potential lapses in reliable power supply by up to seven years amid accelerating coal station closures, delays in new projects and expectations of rising demand.
South Australia is now at risk of unreliable power supply as early as 2023-24, the Australian Energy Market Operator said, in contrast to its advice last year that the state would not breach reliability standards this decade.
NSW could breach reliability standards in 2024-25, four years earlier than advised last year, although AEMO had already flagged that as a possibility after Origin advised of the early closure of the giant Eraring coal power generator as early as August 2025.
AEMO called for “urgent” action across the National Electricity Market to keep power supply secure, after a difficult winter across the east coast marked by spiking electricity and gas prices and emergency measures to prevent blackouts.
In short, we’ll need more gas not less or our energy prices will skyrocket. Not to mention, this:
Australian Industry Group says some of their members are reporting increases in gas contract tariffs to $32 a gigajoule (GJ) for a year’s supply and $36/GJ for six months. The Energy Users Association is reporting members have faced gas contract offers upwards of $25/GJ for one to two years. Last year industry was reporting short-term gas contracts of between $8-9/GJ.
Most of Australian industry is set to renegotiate gas contracts in the next 18 months.
The majority of manufacturers, who use gas as feedstock to make products, and businesses that rely on it for energy, renegotiate their supply contracts every one to two years, said Tennant Reed, principal national adviser for the peak industry lobby group.
“Most businesses are going to be rolling off existing contracts and into hell,” he said.
No, they are not. They are rolling off into insolvency. We already have the lowest industrial output per unit of GDP in the OECD and it is about to go to zero.
Needless to say, this is probably unwise given that 71% of east coast gas is going to China building its military-industrial power while ours disappears entirely.
Even Australia’s idiot MSM is going to panic about this at some point and when it does the Mad King will be forced to act to supply gas to the Australian economy. At that juncture, her hollow promises to our Asian friends will be exposed.
You can dress it up any way you like but the truth of it is there is no energy security for anybody unless Australia’s gas market is fixed with a $7Gj domestic reservation or export levy price trigger.
Making promises you can’t keep is no way to keep friends.
