Regardless of people's opinions on what the effect the Carbon Tax will have , the main thing is that , it's about to happen .
All those projects ( not just gas fired power stations ) which have been on hold for ages will finally be able to make the FID's that they've been wanting to. This will help take the uncertainty out of the market.
E.g. TRU energy has plans to build a new ( up to 1000mw ) gas fired power station adjacent to it's Yallourn coal fired station. It had previously put these plans on hold when Kevin 747 lost his nerve. I'm not saying that after Sunday it will be a sure thing but I'II bet it's a heck of a lot closer.
I also recall Grant King from ORG ( and I think Michael Fraser from AGK ) stating last year that turning gas molecules into electrons was already profitable without a carbon tax. They were simply waiting for the certainty of the legislation.
Obviously I think that this should be a good thing for Australian gas companies.
ESG Price at posting:
64.5¢ Sentiment: Hold Disclosure: Held
