Will Dutton reserve gas?

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Opposition leader Peter Dutton has put gas ahead of nuclear:

Opposition Leader Peter Dutton has outlined his plan to win back Victoria by ramping up gas production to make energy more affordable and reliable, while also firing a shot at top universities for becoming over-reliant on foreign students.

Opposition Leader Peter Dutton on Friday: “Victoria now is talking about more gas because they’ve been struck by reality.” 

“If we have a serious attempt at meeting our net zero by 2050 targets you need to have a system where you have a baseload power that is firming up the renewables. Gas is going to make a massive play in allowing peaking and firming up in the intervening period.”

That is right. As the AEMO has made clear, there is no scenario in which gas is not central to the energy transition. Moreover, the faster you transition, the more important gas becomes.

But, there is no point in digging up more gas unless a strong domestic reservation system is in place.

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Without that, the East Coast gas cartel will continue to sell all local gas at international prices.

This will not provide Australia with cheap energy unless the whole world has it.

There is literally no point in digging up more gas unless there’s a comprehensive reservation system put in place that brings the price down to $6-7Gj:

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 This is obvious in power futures:

Dutton must reserve gas or he is just another phony.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.