Propaganda is maddening in its resistance to all truth. The Australian.
New sources of gas that have been earmarked to fix a looming east coast shortfall will not be ready in time and cost just as much as imported LNG, a report from Rystad Energy on behalf of gas pipeline operator Jemena has concluded.
…But there are two contrasting visions. For some, Australia should prioritise the development of new sources of supply in Queensland and the Northern Territory, though others have insisted the nation is better served by concentrating on building LNG import terminals, which would allow NSW and Victoria to import cargoes.
Rystad said that, as a result, gas sourced through LNG or traditional pipelines would be similarly priced at between $14 and $19 a gigajoule. Such levels would be higher than the current price of $12-$20 a gigajoule.
That looks roughly right. NT gas is not cheap.
The problem here is characterising it as “two visions” for a solution when there are three, and only the third ignored policy makes any sense.
Reserve existing QLD gas fields for domestic use. The infrastructure is already in place. Any gaps to fill in pipelines or storage are tiny and can be gold-plated for pennies.
It will smash electricity prices lower as well because gas-fired power sets the marginal cost of power.
Peter Dutton has just made this policy case at the election. Just do:
- Use it lose it laws.
- Export levies if local gas demand needs are not met.
Problem solved for the energy transition, energy wars over, inflation smashed, industrial renaissance begins, household real incomes surge, productivity is boosted.
As Peter Dutton made clear, we do not even need to break QLD LNG export contracts. Just divert spot gas volumes.
What is wrong with everybody?
