Interesting analysis from Rystad on East Coast energy prices. 42% of Australia’s gas resources as of 2020 would be marginal or uncommercial, while an incredible 67% of Australia’s discovered but undeveloped resources are at risk under the current pricing levels.
Their Gas Market Analytics forecast Australian operators could expect the gas price to be around US$5.30 per MMBtu to cover their upstream costs, enough to support the production of over 95% of Australia’s gas resources.
Until prices reach this point there will be supply destruction and limited investment in new tenaments, whilst CTP continues to build it's cash suppliers and delivers on Range.
https://www.rystadenergy.com/newsevents/news/press-releases/up-to-42pct-of-australian-gas-resources-uneconomical-at-current-lng-netback-prices/
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