Everybody wants gas, nobody will go get it

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The ALP wants gas. Energy Minister Chris Bowen:

“I think the ISP (Integrated System Plan) sums it up.”

“They see gas capacity going up to 15 gigawatts by 2050, but total dispatch coming down.”

“Because we need more support for renewables, but it will be dispatched less and less often as we build the renewables and the storage.”

“And that’s the key, because gas is zero emissions when it’s not being used, when it’s not turned on.”

“…those six terawatt hours are still going to be important. I see it as like life insurance – you don’t need it very often but when you need it, you really need it. That’s the underpinning role of gas in the system.”

The LNP wants gas. Shadow Energy Minister Ted O’Brien:

“The Coalition believes in a balanced mix of technologies including renewables and gas, with zero-emissions nuclear energy replacing coal as it retires from the system.”

Writing for The Australian, Mr O’Brien said Labor must shift gears and start prioritising energy security – including through securing more gas – or let China, India and Indonesia become the “winners”.

Aussies want gas:

Aussies are opting for gas connections in their homes at record numbers, with the latest industry report showing gas companies in NSW, Victoria and South Australia have more customers now than they did two years ago.

This comes despite concerted campaigning from environmental groups calling on Aussies to ditch their gas kitchens and heaters in favour of electric alternatives, as well as bans on new gas connections implemented in the ACT and Victoria.

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But who will go and get the gas? We still have a shortage with prices locked above Albo’s $12Gj price floor:

Driving record high power prices (outside of war):

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It’s all a pantomime.

The ALP won’t secure the gas from the LNG export cartel because it is afraid of political blowback.

The LNP won’t secure the gas from the LNG export cartel because certain supportive billionaires are part of it.

The people have no willingness to protest to get what they want.

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The media is too dumb to know the difference.

And so the great gas gouge rolls on.

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.