PLEA Network

16 July 2018, Renew Economy, A gas cartel run amok. NEW SOUTH WALES, Australia — “Australia may soon be importing gas.” What a bizarre, implausible statement. Australia is the second largest exporter of gas in the world. Why would we ever import gas? Our very own Department of Industry, Innovation and Science ranked Australia’s market share at 20 per cent of world gas exports in 2017. Sadly, however, it is true. Despite our enormous reserves of gas, there are now four gas import terminal projects on the go; four facilities being developed to import gas into Australia. All are backed by major gas market players, either locally or globally. Although Australia may soon surpass Qatar as the world’s largest exporter of LNG, we have failed to provide gas at a reasonable price for our own people. The market, with the exception of Western Australia, is starved of gas, so domestic prices are among the highest of any country in the world. As the government won’t intervene to establish a “domestic reservation policy,” the very policy which keeps WA gas prices far more affordable than the eastern states, the gas giants are building import facilities, facilities which will allow them to further profiteer as gas prices continue to rise. To the four import terminals: there is a terminal proposed for Port Kembla in NSW. This one is backed by Andrew “Twiggy” Forrest, JERA and Marubeni. There is another at Cribb Point in Victoria being built by AGL, another still in Victoria for ExxonMobil, and Mitsubishi’s Pelican Point project in South Australia. All of these major corporations – and one entrepreneur in Andrew Forrest – agree on one thing, they can make money by importing LNG into Australia because the prices paid by Australian consumers are so high. Read More here