Australian LNG

Apparently not.

Bill Shorten has also spoken on energy today at the AFR Summit: Mr Shorten said Labor would also introduce a national interest test for all new LNG facilities to “guard against a repeat of the current crisis”.

Farewell CET: Energy Minister Josh Frydenberg has all but ruled out a clean energy target, saying the transition to lower greenhouse gas emissions cannot come at the expense of the reliability and affordability of our electricity system.

Judith Sloan lost it on energy over the weekend: Move over, Ponzi; forget Bernie Madoff; ignore Enron; and dismiss collateralised debt obligations ­associated with subprime mort­gages.

It’s taken five years but the great gas smash has finally begun.

Cross-posted from Australia Institute: Australia has plenty of cheap gas.

Via the AFR: While the federal government has threatened to use the GST formula to punish states that ban coal-seam gas, the body that administers the GST has already concluded the threat is not very scary.

Via the AFR: …prices could be higher based on the spot Asian LNG price for the first quarter next year, translating to at least $11 a gigajoule for a large manufacturer in Victoria, and even more for a smaller one, said Mark Samter, energy analyst at Credit Suisse.

From the AFR today: Even now that Canberra has backed away from triggering the export controls, Tuesday’s deal is seen having a similar effect as Queensland’s exports of gas will be essentially limited to long-term contracts.

Australian gas customers are moving in for the kill: The recent renegotiation of the Gorgon contract between India’s Petronet LNG (PLL) and Mobil Australia Resource Company is bound to open more doors for similar deals, credit rating agency ICRA said.

Today from the AFR: International chemical industry investors have warned the gas supply deal does not address the soaring prices that are putting tens of thousands of jobs at risk and are calling for a national energy policy that would help open up onshore gas in Victoria and NSW.

Via the ABC: In the end bloodshed was avoided.

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.