Buried deep in The Australian today is Jenny George demanding gas reservation:
The recent headline “Gas shortfall expected to hit east coast in 2027” sounded an ominous warning. The ACCC brought forward its prediction of gas shortfalls by a year and called for an “urgent” development of new sources of supply. Similar warnings have been made by the market operator AEMO. The Albanese government is facing a serious structural shortfall in gas supply.
This serious predicament had its origins back in August 2012 when the Gillard government rejected a gas reservation scheme. Over the years, the ACCC reported that LNG producers were cutting back on domestic supplies to meet overseas demand. This was at odds with their previous assurances that sufficient supply and prices would not be affected by export contracts.
Commitments made were broken. Both parties must take their share of responsibility for allowing a cartel of global energy companies to control our natural gas supplies and effectively set the price of gas.
We’ve learnt the hard way. Gas has not been a cheap source of energy since 80 per cent of it was exported. Gas sets the marginal cost of electricity. When it’s used, especially in times of low renewables output, unsustainable cost increases are passed on in our bills.
…It beggars belief that gas import terminals are seen as a solution, with one under construction by Andrew Forrest’s company at Port Kembla. Relying on imported LNG would expose our economy to global energy shocks. In a troubled world, energy security is key. As one of the world’s largest LNG exporters there’s no justification for importing gas to deal with domestic shortages that have resulted from our policy failure.
…There’s only the one option remaining to deal with this emerging energy crisis. We need a legally binding gas reservation scheme. From the start it could cover issues of supply and price for uncontracted gas. Existing long-term export contracts, set to expire from the mid-30s, would remain unaffected, eliminating arguments about sovereign risk.
The LNG exporters need to appreciate that they operate with a social licence.
…Gas shortages are now an issue of national importance, one that demands immediate attention and bipartisan support for a legally binding gas reservation scheme.
The urgent response from Albo and his treasonous Resources Minister, Mad King, is the sound of….crickets…
Even as their own policy of a $12Gj gas price cap has turned into a criminal price floor:
And electricity prices are at record highs outside of wartime profiteering:
Another round of bill shocks and/or higher taxes to pay for rebates is being built in.
Where is the media? Where is the government? Where is the anger at being viciously abused by the gas cartel?
