Australian LNG

Via The New Daily: Australia’s gas producers are pushing the government to guarantee the purchase of gas in the domestic market, in a proposal that could cost taxpayers tens of millions of dollars.

First up, Trumps tax cuts are going to help US shale, via the FT And yet the proposals would be a very big deal if passed, at least for US stocks and at least in the short term.

Via the AFR: The commitments made by the three LNG exporters that they will make enough gas available to fill the shortfall identified for 2018 are clearly welcome: Government, gas producers and buyers all agree.

Via the AFR: The Turnbull government has relaxed its threat to place curbs on LNG exports after the gas giants assured Prime Minister Malcolm Turnbull and his senior minsters they would provide enough fuel to fill the looming domestic shortfall for the next two years at least.

Via the AFR: The heads of the Queensland LNG ventures headed up by Origin Energy, Shell and Santos have been summoned to meet again with Mr Turnbull in Sydney on Wednesday morning, when they are expected to come under pressure to commit to only shipping gas that is covered under long-term sales contracts.

Via Barnaby today: Mr Joyce said the gas companies were already moving to release gas to the domestic market and the price was coming down, but more had to be done.

It’s the usual complete drivel on gas in the press today, from Phil Coorey: Gas companies only have to look at the pressure being heaped on the banks and AGL Energy at the moment, should they still think the government is bluffing on its threat to intervene in the export market.

Via the FT: Brent crude oil rose above $58 a barrel on Monday to its highest in more than two years, lifted by fast-growing demand and a threat to Iraqi Kurdistan’s crude exports as the autonomous region holds a referendum on independence.

Via Domainfax: The Turnbull government has given the east coast gas giants one last chance to free up enough fuel for the domestic market or be hit with export controls, after two new reports showed the predicted shortfall to be three times worse than originally thought.

Via the AFR: The Turnbull government is set to pull the trigger on limiting gas exports within days following the latest report from the Australian Energy Market Operator warning there is a significant risk of a gas shortfall in the eastern states over the next two years – and it could get worse.

The AFR thinks so: If factories fall silent in eastern Australia because they are short of gas, then the Coalition will likely follow them out the door at the next election.

Morgan Stanley thinks so: Product markets are showing signs of outright tightness, particularly middle distillates.

Via the AFR: Malcolm Turnbull has indicated the government will pull the trigger to enforce limits on east coast gas exports and try to direct more to domestic supply, prompting howls of protest from the LNG giants and warnings about sovereign risk.

Via the AFR: The managing director of Australia’s biggest brick making company says if a company was ever run as badly as Australia has been in the past 10 years by its politicians, the entire board would step down.

Citi says so:  Oil markets are persistently misunderstanding this Friday’s meeting of the OPEC JMMC in Vienna, confusing it with an OPEC ministerial meeting and expecting decisions related to whether the producer group plus Russia and other non-OPEC countries will extend and/or deepen their output cuts.

The new gas narrative is given greater impetus today by the ACCC: Australian factories are at risk of shutting down and sacking workers as the nation’s gas exporters starve local customers in favour of overseas clients, according to a dire warning from the competition watchdog that clears the way for a gas crackdown.

If you want to know why Do-nothing Malcolm suddenly loves coal then look no further than this: The opposition leader just wrapped up a two-day visit to the sunshine state selling Labor’s $1bn tourism plan, flying out as Turnbull flies in.

The MB line on the energy crisis is now official.

Via The Australian through gritted teeth: The use of high-cost gas for electricity generation has almost doubled in two years, producing a perfect storm for household bills of record gas prices and a growing reliance on it to fill the energy gaps as coal plants come off line.

It’s getting worse not better as Do-nothing Malcolm’s political barstardry leads the nation down the energy rabbit hole.

Via the AFR: Coal-fired generation equal to 10 Liddell power stations will have to be closed by 2036 for Australia to meet its Paris climate agreement pledge, the Australian Energy Market Operator says.

Via UBS: Domestic market accepts diverted Qld LNG gas; GLNG the surprise player Our June 2017 research note on east coast gas concluded that there would be no physical gas shortage, just a shortage of cheap gas, as Queensland LNG projects divert more gas into the domestic market.

Via The Australian: Bill Shorten asks the same question, hoping repetition will prove effective.