Australian LNG

Twiggy wants into the gas cartel: Billionaire Andrew Forrest is studying a proposed 2,400-kilometre transcontinental natural gas pipeline across Australia as part of his iron ore company’s strategy to diversify.

Some details leaked to the AFR’s Ben Potter: …Coal plants will have to compete on a level playing field with gas peaking plants, hydro and battery storage and “demand response” for the supply of “dispatchable” energy to firm up wind and solar power in the National Electricity Market, industry sources said.

It would be in the national interest.

Once again I find myself calling for the head of the manufacturing lobby’s CEO.

Mark Kenny says we shouldn’t underestimate Josh Frydenberg: How persuasive is Josh Frydenberg?

Via Domainfax: Santos’s Chinese shareholder is understood to be in talks with suitor Harbour Energy to retain a major stake in the Australian oil and gas producer if Harbour’s $13.5 billion bid succeeds.

Hypocrisy thy name is Frydenberg, via the AFR Energy Minister Josh Frydenberg will today call for an end to the extreme ideologies on both sides of the energy debate, warning that consumers and taxpayers were paying the price of policy paralysis.

Via The Australian: Malcolm Turnbull has savaged Tony Abbott’s proposal to forcibly acquire the Liddell coal power station, declaring such a move would be against the values of the Liberal Party.

Via New Daily: The world’s biggest lithium-ion battery — built by tech billionaire Elon Musk’s company Tesla last year — has survived its first summer in South Australia’s mid-north. And according to a new report by the Australian Energy Market Operator (AEMO), it’s outperforming coal and gas generators on some key measures.

Via Domainfax: AGL will defy pressure by the Turnbull government to sell its ageing Liddell power plant, warning that interference in the market would raise issues of ‘‘sovereign risk’’ that could deter investment in new energy assets.

Yes, Australian energy has reached such epic proportions of stupidity.

Will the private sector build a coal-fired power plant?

Via the AFR: US private equity firm Harbour Energy has renewed its takeover tilt for Santos, lobbing a $13.5 billion cash takeover offer with a high enough price to get engagement from the board, but with foreign investment approvals still outstanding.

Via the AFR: Victoria will experience significant gas shortages within three years unless additional supply is brought online, which could have flow-on effects for the whole National Electricity Market, according to a new report by the Australian Energy Market Operator.

Via The Australian: Australia should focus on lowering energy costs rather than guaranteeing reliability, Australian Competition & Consumer Commission chairman Rod Sims said yesterday, as he declared high ­energy prices to be the biggest crisis facing the nation.

Via the AFR: Global energy giant Royal Dutch Shell is considering a move to break into Australia’s domestic retail energy market to take on the established players of Origin Energy, AGL Energy and EnergyAustralia in what could be the biggest shake-up of the energy market in decades.

Via the AFR: The federal government is planning to toughen up on allowable deductions under the Petroleum Resources Rent Tax but is expected to exempt existing projects from the new regime to avoid the creation of sovereign risk.

Via the AFR: Australian Competition and Consumer Commission chairman Rod Sims has warned the Turnbull government’s National Energy Guarantee could stifle competition in the energy sector or push up prices for businesses and consumers if it was not properly designed.

So says Rystad Energy: “Shale is not dead, shale is reborn and has strong growth potential [even] at $US40 to $US50 oil,” said chief executive Jarand Rystad at the opening of the firm’s Sydney office.

Via Reneweconomy: The South Australia state government is to provide a $10 million loan to help UK billionaire Sanjeev Gupta trump fellow US billionaire Elon Musk and build an even bigger battery at Port Whyalla.

The WSJ reports: OPEC is breaking down into two camps after more than a year of unity.