Ann: Appendix 3Y - Victoria Binns, page-13

Jake

You ask a good question: "are you implying that COE's customers are paying $8.00/GJ for their gas under the GSA's that they have executed with COE??"

My assumption, based on COE's half year presentation with LNG netback ex-Qld (slide 21) and slide 10 that shows 1H20 asp of $8.35/GJ, has always been that firm gas costs ~$8/GJ.

In 1H21, when Sole was supplying spot, asp for COE was $6.35/GJ. So with a bit of firm Casino gas, that makes sense?

The outlook and future prices for firm will be driven by LNG netback and the perception of the supply/demand balance in SE Aus.

LNG imports don't come cheap, utilities like AGL, EA and Alinta will use them as a bargaining chip but do they really want to lock this in? Imo, no.

Does anyone else hold a different view?