AFR reported Macquarie Bank as the front-runner to buy up to 50...

AFR reported Macquarie Bank as the front-runner to buy up to 50 per cent in EnergyAustralia.

Whilst the Bank will be interested in leveraging the gentailer for financing additional renewable infrastructure developments, they'll also be considering additional gas assets to maintain firming capacity.

Macquarie has long held ambitions on developing the East Coast gas market in Australia, replicating their dominance in US power and gas markets.

They initially tried to get a foothold with the $87m takeover offer for CTP in 2016, and then purchased 50% of Mereenie from Santos for $52m after CTP shareholders rejected the offer. They remain a committed partner to this day.

Whilst the politics are messy, Gas remains increasingly important for firming capacity for the grid. You can be sure players like Macquarie will be leveraging the cheapest sources, regardless of the politics associated with it.