Abu Dhabi pulls out of Santos takeover bid

Santos runs two LNG export trains out of Gladstone, Queensland, which siphons up East Coast gas and ships it to Asia (mostly China).

Since Santos’ LNG export trains came online in 2015 (alongside others), the volume of gas produced on the East Coast has doubled, while 25% less gas has been supplied to domestic users.

The resulting artificial shortage of gas has, in turn, tripled domestic gas prices to an average of around $12 a gigajoule, hollowing out industry, raising electricity prices, and driving up inflation.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.