So says Japan:
Japan warns that global competition for liquefied natural gas is set to intensify over the next three years due to an underinvestment in supply.
Long-term LNG contracts that start before 2026 are sold out, according to a survey of Japanese companies conducted by the trade ministry and released Monday. These types of contracts are essential for buyers, as they offer stable pricing and reliable supply for many years.
It’s true. Spot gas futures are high for a long time:
It’s better for contracts because they price as a percentage of oil:
Meanwhile, the Evil Gas Cartel has thrown caution to the wind and lifted local spot prices into the teeth of intervention:
Might as well make every penny before being butchered by regulation. (fingers crossed).
Where LNG goes, coal follows:
Albo’s cowards better move soon because electricity futures are glued at catastrophic prices:
But “quickly” is not a part of Chicken Chalmers’ lexicon:
Industry believes increasingly that the government will settle for a price cap.
“We don’t want to see the hollowing out of our industrial base as a consequence of high energy prices brought about by Russian aggression. That’s our starting point,” Dr Chalmers told about 100 executives from manufacturing and industry.
“The ‘why’ is simple – we don’t want to see our industries hollowed out,” he said of the conundrum posed by surging gas and energy prices.
“The ‘how’ is ideally a regulatory change rather than a tax change. And ideally, something which focuses on the domestic market without causing problems for our international obligations.”
That begs the question of why was it OK for hollowing out since May, a period of time over which Chicken Chalmers did nothing?
There is no answer that makes sense.
