What is going on in Australia’s gas market explained

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The competition regulator has effectively accused big gas exporters of failing to supply enough gas to the domestic market. Gas producers disagree. Here’s what you need to know.

It wants the federal government to stop the exporters selling “excess” gas – or gas that isn’t already contracted to overseas buyers – into offshore markets next year, saying this will lead to a shortfall in domestic supplies.

Much of the gas produced in Australia’s east coast is produced by companies that are also LNG exporters. “If LNG exporters were to provide all of their excess gas to overseas markets, the east coast gas market would be facing a supply shortfall of 56 PJ.” , ConocoPhillips and Sinopec, Queensland Curtis LNG, which is led by Shell, and Gladstone LNG, which is operated by Santos, TotalEnergies, Petronas and Kogas. These three export ventures effectively control 90 per cent of known gas reserves on the east coast.Higher prices. Gas prices are surging around the world. Demand from offshore has increased because of the Russian invasion of Ukraine, which has forced European countries to stop buying Russian gas.

Exporters have also dramatically widened the spread of prices offered to domestic buyers from between $7 and $8, to between $7 and as much as $25. This is despite the fact that the estimated forward cost of production is steady at just over $5.Yes. A heads of agreement, often dubbed a “gentleman’s agreement” exists between the big producers and the federal government.

 

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Tell me you've failed as an energy market regulator without telling me you've failed as an energy market regulator Despite 30 years of ACCC regulation, gas producers have the watchdog wrapped around their little finger acccgovau admits defeat, so now the govt has to fix it all

Watt the minister was telling us people r hurting but she is more worried about sovg risk Who the hell does she work for b4 using the trigger she is waiting riots in the street like Srilanka She was dancing skirting the trigger

It’s a failure of policy. If the gas reserving requirements of WA existed in other states there would be neither gas shortages or massive electricity price hikes. To force a competition regulator to impose non competitive conditions on a market doesn’t make much sense either.

Pretending government is in control of the treasonous corporations that own the parasite political class..laughable considering these american sanctions are being promoted. shame how you cannot discuss that our entire economy is being sacrificed for U.S FAILED GLOBAL HEGEMONY

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Treasurer puts gas companies on notice as supply shortfall loomsThe consumer watchdog has warned the local energy market may suffer a shortfall in wholesale supply as gas companies announce record profits. Don't put them on notice' just do it like they do with consumers. Just do it. Pull gas trigger while hitting these companies with massive tax increase Lol.....and they are shaking in there boots i bet. All good tho. They will just cap more wells and say there is no gas as the prices rise.
La source: brisbanetimes - 🏆 13. / 67 Lire la suite »