Victoria Gas Supply Side

This calendar year and next may have supply-side gas reserves increase in Victoria.

I am monitoring 3 supply side threats:

1) Conoco Philips/Red Oil (Bass Strait) exploration;
2) Beach Energy (Otway Basin) exploration;
3) New discoveries of conventional gas on the Victorian mainland

I'm not too bothered by LNG import terminals or getting LNG pumped from NSW or Queensland due to distribution costs.

The gas is there and it's not going anywhere but I would be lying if I said I wasn't disappointed with the delays at Orbost Gas Plant and am positive it will be resolved. I am reserved about this distraction and what it means for further development of other assets. The longer this takes the less value we can get for our LNG if other gas discoveries are found in the region that are competitively priced.

The gas isn't going anywhere but the competition isn't either.