In a hopeful turn of events, the Albanese government is considering imposing an East Coast gas reservation policy. Via the AFR:
The Albanese government is likely to consider developing an east coast gas reservation as part of a sweeping review of the country’s energy system.
Energy industry sources speaking on the condition of anonymity said the sector was preparing for the federal government to begin investigating the viability of a reservation amid escalating concerns of an East Coast gas shortage.
Resources Minister Madeleine King this week put the energy industry on notice, saying it was unfair Australians were paying high prices for gas while the nation’s supply was exported.
She flagged the government would soon embark on a review of Australia’s gas market frameworks.
A spokesman for King told The Australian Financial Review on Thursday that the government’s review would include “the role of market bodies to ensure more gas is made available for Australians”.
…A second energy industry source said they believed the opposition’s election policy had opened the door for the Labor government to consider a domestic reserve.
Labor needs only to copy the Dutton plan, which was excellent. It used floating export levies to ensure a 10% surplus was always in place for local gas.
It operated entirely from spot gas, so it did not affect existing export contracts.
If it were to sink the gas price to $9Gj, the difference versus LNG imports would be huge for electricity and inflation.
This is a no-brainer huge win for the government as energy wars ease, the energy transition stabilises, household disposable income jumps, industry stops dying, and productivity gets a kickstart.
Then the global supply wave cometh, and with reservation in place, the full force of falling global prices can be enjoyed locally.
Just do it.
