Well, holy cow. Some of what I’ve been writing has been polemical pressure. I didn’t really think it would come to this:
As a result of the heads of agreement, Resources Minister Madeleine King also said the Albanese government will not need to pull the trigger on the Australian domestic gas supply mechanism as a result of increased supply.
Resources Minister Madeleine King says the gas supply deal will put downward pressure on prices but they are unlikely to return to the low points of $6 a gigajoule.
“Gas prices are very unlikely to return to the low points of like $6 or $8 or even $10,” King tells reporters.
“That’s never going to happen again … the truth is at the moment, we’re in a global energy crisis.
She said the whole world will continue to face a heavy crunch on gas prices in response to the volatility of the Russia-Ukraine war.
…The revised heads of agreement will also see the three major east coast gas producers offer gas to the domestic market in accordance with a code of conduct.
The code of conduct is tied to the heads of agreement and sets behavioural expectations of how gas is to be offered.
…“I want to state very firmly and clearly that Australia will always be trusted and reliable trading partner, and a safe place to invest,” she said.
Resources Minister Madeleine King will announce a deal with the three major east coast gas producers to cover a forecast domestic shortfall in 2023, avoiding the threat of export controls that have alarmed the industry’s foreign export customers.
A code of conduct. Fuck me dead:
The code requires gas to be offered with sufficient notice in volumes that can be taken by customers. Pricing structures are also embedded in the code.
The new heads of agreement also requires information regarding notice and volumes to be easily found on company websites. “This new level of transparency as well as increased supply will put downward pressure on prices,” Resources Minister Madeleine King said.
The gas producers will also release quarterly reports on their actions to supply gas to the domestic market.
King added the onus would be on LNG exporters to demonstrate that the code of conduct combined with the heads of agreement can work.
What does it mean to have “pricing structures are also embedded in the code”. My best is that means export netback prices which is around $75Gj, up from $23Gj today…
Once again, all concerned are at the mercy of the Evil Gas Cartel with no energy security of supply for anyone (including foreign customers).
