Small east coast gas buyers are eagerly awaiting signs that cheaper gas will be available next year after prices at the main Queensland hub dropped, but there is little sign producers or retailers are restarting marketing as they digestGas industry sources said producers were sitting on their hands as they tried to figure out how the new rules would apply and how they could avoid inadvertent breaches that would attract heavy penalties.
Yaron Flicker, managing director of textiles maker Flickers Australia, said: “Our broker is going to ask the question, but retailers were waiting for the legislation; we are certainly going to ask them to get uncontracted gas.”“To be frank, I am a little unsure about the situation. I’m uncontracted, so I would like to believe they should be able to sell me uncontracted gas.
NSW magnesium products maker Causmag International, which has no gas supply lined up after December 31,Retailer Origin Energy said all its gas for next year was already contracted, and it would have to see what further supplies it could secure to make new offers. AGL Energy, which does not produce its own gas, is still awaiting clarification on the final form of the legislation underpinning the price cap and how it will be implemented. It is understood to be seeking offers from producers on the east coast to supply customers.
“Everything could end up in the spot market or arbitration, with little likelihood parties will be able to agree deals given the uncertainty in the policy applications to terms such as shape and flexibility.”
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