This is the worst government of my lifetime, and that is saying something. AFR.
The Albanese government will consider establishing an east coast gas reservation but has ruled out imposing domestic supply conditions on existing projects.
Energy and Climate Change Minister Chris Bowen on Monday confirmed a government review of the east coast gas market would include whether domestic needs would be considered as part of all new export projects.
“New supply, wholly for export, will not help Australia’s domestic gas needs,” Bowen said. “What we will be looking at is sensible, forward-looking, prospective measures to ensure that Australians get access to the gas.
New gas doesn’t meet Australia’s needs, either.
Reserving future projects comes with two problems.
First, outside of the export cartel, there is only expensive gas.
Second, reservation doesn’t work if it is piecemeal. The cartel just juggles its portfolio of assets to sell the cheapest gas overseas and the most expensive in Australia.
This is a nothing policy from a nothing government full of gas-captured crooks.
The gas shortage will intensify under this policy until prices are permanently benchmarked to new projects costing $15Gj from the NT or LNG imports, whichever is cheaper.
Either way, you lose, given gas sets the marginal cost of electricity.
Indeed, the gas shortage is already intensifying, according to the ACCC.
The east coast gas supply outlook for 2025 and 2026 has deteriorated despite an easing in gas prices in the second half of 2024, according to the ACCC’s latest gas inquiry report, released today.
The report finds that there is a risk of shortfall in the fourth quarter of 2025 and throughout 2026 if Queensland LNG producers export all uncontracted gas.
Peter Dutton handed them the answer by reserving that uncontracted gas, which is expected to grow significantly over the next ten years; Labour’s energy crooks just wouldn’t take yes for an answer.
Except, I fear, to ADNOC, and the Santos bid.
