Welcome to the gas poopocalypse
Honestly, if you have the dough, you could successfully argue the moon is made of poop in the Aussie political economy. Labor has failed to win over the Coalition and energy producers after unveiling legislation for its controversial gas reservation scheme, leaving the program’s future in doubt as the government pledges to deliver a “sufficient The post Welcome to the gas poopocalypse appeared…
Australians are facing what some are calling the "gas poopocalypse." Labor's proposed gas reservation scheme has faced criticism and skepticism from energy producers and the Coalition. The scheme aims to oversupply the domestic market by requiring exporters to offer gas equivalent to up to 110% of forecast domestic demand, while also implementing "must-sell" provisions that force exporters to sell up to 20% of LNG export volumes to the domestic market.
Energy producers have slammed the government for pursuing an artificial oversupply of gas, warning it will weaken investment signals and crowd out smaller, domestic-focused producers. The spot gas price has risen above the $12Gj cap for the first time in years, indicating that the cartel is pushing for higher prices.
The government pledges to deliver a sufficient volume of gas to the east coast market, but major sticking points remain. Labor remains committed to the scheme, while the Coalition demands that Labor work with it rather than the "anti-gas" Greens. However, it is unclear whether the government will remove the $12Gj cap or allow itself to be bullied by global energy shocks.
As of now, it is uncertain whether gas suppliers will be forced to sell below cost or if the moon is made of poop. The outcome remains uncertain, but one thing is clear: the gas market is currently in turmoil, with potential long-term consequences for the Australian energy sector.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
