The gas cartel wants Albo to stop it.
“APLNG’s position on this is, that while we don’t like interventions, we feel like a major intervention is probably needed, which is to establish an export permit system,” Mr Clark [CEO] said.
“If you’re going to export, you should also have to contribute to the domestic market and right now, that’s not the case.
“And so we think that doesn’t create the right incentives for the player—the exporters in the market—it doesn’t create enough certainty for those exporters, nor for the rest of the gas supply in the market.”
APLNG is Origin Energy. Where you’ll find Origin, you will also find its shameless sponsored patsy as well.
Grattan Institute energy and climate change program director Tony Wood said the federal government could introduce a light-handed mechanism that imposed conditions to ensure the domestic market was met and prices were fair.
“Defining those two things are hard, but that is what the outcome should be,” Mr Wood said.
“On a continuous basis you’d have to be look at what’s the forward expectations of demand, what’s the forward expectations of domestic supply, is there a shortfall and then require that the producers meet that shortfall.”
The APLNG CEO’s (and his dag’s) intervention appears targeted at two things.
First, Santos-led GLNG is the operation that withdraws supply from the local market. Its CEO misrepresented his role in the market in AFR two days ago. GLNG is a giant gas suckhole on the East Coast.
Second, APLNG is trying to save QLD from itself, which, in recent days, has demanded no domestic reservation, having been taken for a ride by Gina Rinehart’s Senex Energy, which is supplying GLNG.
The IEEFA has more on that.
Queensland’s LNG projects have generated relatively limited ongoing economic benefits, with returns and royalties well below expectations and negligible tax paid until FY2023-24.
LNG exports have tripled gas prices, costing households and businesses an extra AU$4.3 billion in FY2023-24. High gas prices also contributed to a doubling in electricity prices and higher inflation.
LNG exports increased Queensland’s carbon emissions, comprising 5.5% of the state’s emissions in FY2022-23. If Queensland achieves its 2035 emissions target, the LNG sector’s share could reach 16%.
High gas prices have contributed to at least 1,240 manufacturing job losses, with 500 more under threat. This represents 70% of the Queensland LNG exporters’ total workforce, and raises questions about the best uses for Australia’s gas.
There is also the small matter of $9 billion per year in higher electricity prices for households. Wider business is on top of this figure.
The IEEFA is being kind. The gas cartel is a net negative for the East Coast economy, in my view.
The gas cartel is right to demand it be stopped.
The question is, is that sufficient to encourage Inactive Albo to take action?
