Remember, gas often sets the price of electricity in the wholesale market, so this debate is immense. The Australian.
A sweeping review of Australia’s east coast gas market slated to begin in mid-2025 is shaping up as the economy’s last realistic chance to avert a looming energy crisis that industry leaders say could have widespread consequences.
The review, initiated by Prime Minister Anthony Albanese’s Labor government, will scrutinise three overlapping regulatory policies that currently govern the eastern market, including a controversial cap on new gas supply. The $12 per gigajoule price ceiling, introduced in response to spiking domestic prices, has drawn sharp criticism from energy producers who claim it discourages much-needed investment in exploration and development.
…The high-stakes policy debate has exposed a sharp divide over how best to address the crisis. One camp advocates for accelerating the development of new gas reserves in Queensland and the Northern Territory. The other favours building liquefied natural gas (LNG) import terminals in southern states like New South Wales and Victoria, allowing them to bring in overseas supplies.
Absolute balderdash. The third, unmentioned option is the only worthy policy.
Use Peter Dutton’s gas policy.
Force QLD gas producers to redirect spot volumes that they currently export into the local market by imposing export levies. You can set your own local price.
APA Group has already offered to gold-plate pipelines south for $2 billion. An alternative is to build a few more storage tanks in Sydney and Melbourne and fill them with off-season gas using existing infrastructure.
This international price for local gas to international markets must be broken, not strengthened via LNG imports, or Australian energy prices will skyrocket, industry will be crippled, inflation will surge, and households will buckle.
We’ve already been through it once. Don’t do it again.
As former ACCC head Rod Sims says, the alternative is huge productivity upside. The Australian.
Support for renewables is often characterised as reliance on solar and wind only. This is not so. We have pumped hydro and ever improving batteries, and gas is ideal for ensuring reliability with its low capital cost and high operating cost.
Gas has played a key role in fossil fuel electricity generation; so it will in the net zero world, albeit with less volume required. The Coalition went to the election with a policy on gas reservation. The details were not available, but the key point is that Australia has enough gas, we just need to determine how to make it work for Australia. Australia has by far the highest domestic gas prices of any gas exporting country; this must change, and the government has the ability to make this happen.
The political benefits for Albo are huge.
- He will end all energy wars at a stroke.
- Make the energy transition unassailable at a stroke.
- Boost living standards materially at a stroke.
- Act bipartisanly and become an unassailable national interest PM at a stroke.
The only explanation for not doing it is deep corruption.
