The following is the worst crock of shit I have read in a long time from the gas cartel.
Written by Stephen Hartry, designated “gas industry executive”—that is, CEO of GLNG, the Santos white elephant that is short of gas under the proposed gas reservation—the article suggests that Santos is largely short of gas because it is mining bullshit.
The announced domestic gas reservation scheme would only undermine the investment case for new gas development because its stated aim is to oversupply the domestic market and forc prices down. The Australian Competition and Consumer Commission has been clear: once transport and a reasonable return on capital are included, the marginal cost of new supply sits at about $12-$13 a gigajoule – and rising. Contract prices below this level are unsustainable and will not support new gas supply investment.
The full text of this article is available to MacroBusiness subscribers
