east coast gas users set for a jolt, page-3

Sg,

Its a good article. Thanks.

Something it doesn't discuss though is what impact the incremental production ramp ups will have on the spot price.

LNG ltd have already indicated they wish to try and soak this supply up. Their is also some ideas on using gas storage (efficiency?). I expect to see some more ramp up partnering deals to help with this production challenge.

We do know for a fact though. Prices are going up and wa's reservation policies dont prevent the market from getting $6-8/GJ. Hell, australia will still have a price advantage over its eastern neighbours.

Cheers,

SF