Beetaloo must trash the gas cartel
If you want to see a failed market in action, look at this chart. While there was a debate about gas taxes and domestic reservation, the gas export cartel pushed the price lower to hoodwink the public. Now it is over, and global prices are going nuts; the price is glued to the $12Gj price The post Beetaloo must trash the gas cartel appeared first on MacroBusiness .
The Beetaloo gas basin, located in the Northern Territory, holds vast reserves of approximately 7500 petajoules, which could potentially provide energy for the entire East Coast for 14 years. However, the gas is currently facing challenges due to a gas export cartel that is pushing prices to a $12Gj price cap, imposed by the government.
This price cap has led to concerns about the competitiveness of Beetaloo gas, as it would be imported to Queensland at a cost of $15Gj, making it far too expensive for consumption in the state.
Despite this, APA Group has proposed a gas pipeline, known as the North to East Australia Pipeline, which would carry gas from the Beetaloo Basin to the east coast. This pipeline, stretching 899 kilometers from the Northern Territory to Gladstone, aims to streamline the approvals process for a "coordinated project." By connecting the emerging Beetaloo gas province to APA's east coast gas grid, the pipeline would enable the efficient transportation of gas from the remote region to LNG export plants in Gladstone.
The Beetaloo gas should ideally be exported to Asia, as it is currently not competitive for domestic consumption in Queensland or even in Victoria, where the cost to pipe the gas would be $11Gj. The proposed domestic reservation, which mandates that 20% of uncontracted and newly contracted gas must be oversold into the East Coast, could further complicate matters.
If the reservation is watered down, Beetaloo gas may end up being supplied to Australia, leaving the export cartel with low-cost gas to export, while the more expensive gas is exported from Queensland.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
