More gas lies to unpack today from the AFR, which is gas propaganda HQ.
The amount of gas likely to be used to generate power over the next 25 years has been slashed by almost 39 per cent in the grid operator’s central forecasts as renewables growth undercuts its role and boosts criticism of Labor’s plan to reserve gas exports.
The drastic downward revision in forecast gas power generation is largely a result of the huge flood of big batteries that have entered the development pipeline since 2024, which compete with gas to supply electricity during expensive evening peaks.
An expected shutdown on Sunday of the east coast’s biggest source of domestic gas power – the ExxonMobil-run Longford gas plant in Victoria – passed without any significant spike in energy prices or shortage risk.
Energy does not work like this. It is fungible. Any such dramatic fall in gas energy demand will result in an equally large fall in the price, increasing demand.
As for this weekend being a test, forget about it. Weekend use is far lower.
A better test has been this week when a cold snap hit the East Coast, and power demand surged. Gas prices tripled overnight.
Bring on the batteries, and they will help, but gas is going to remain a key marginal price setter for electricity for as far as the eye can see.
For more lies, we turn to the king of gas liars, Santos.
Energy giant Santos has ripped into manufacturers over their demands for cheap supplies of local gas and challenged industrial users to offer steel below market price in a significant escalation of tensions for the Albanese government.
Manufacturers demanded a ban on negotiating carve-outs from Labor’s domestic gas reservation policy and expect supplies below $10 a gigajoule for industrial customers.
Santos chief executive Kevin Gallagher hit back at the sub-$10GJ demand, saying the LNG exporter would not be signing contracts below the full cycle cost of gas supply.
“Management and boards would be breaching their fiduciary duties, and shareholders and regulators would crucify them for doing so,” Mr Gallagher said.
How about Gallagher go back to Scotland to rip off his homeland instead of this one.
As we know, it is STO’s misplanned GLNG that is short of gas for reservation.
Full cycle, my arse. That’s a ludicrous claim for $1000Gj gas prices. STO has super cheap gas ready to go locally. It just prefers to send to Korea and sell us the expensive sludge.
The Cooper Basic gas that STO steals on Korea’s behalf has 2c reserves (STO+) exceeding 1700Pj. This gas can be. profitably produced (all-in) for about $6 Gj delivered. 2P reserves today are produced for about $4Gj.
All of these prices are hidden in various cunning ways in its financials.
STO is the biggest liar and worst corporate citizen in Australia.
20% reserve is generous. SA charges 40%.
We need a “Go home, Gallagher” movement.
