There is no way they have committed to a contract price of $3/GJ - yes there have been some spot prices this low in recent times but spot prices are completely irrelevant for long term contract prices which will be much higher. As an example a user may dump unused gas on the spot market to avoid penalties under transmission contracts - ie they have nominated for a certain amount on a particular day but will not use it for wahetever reason so they sell to avoid having to renominate at short notice and pay a penalty
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Ann: Strike Grants West Erregulla Gas Offtake Option, page-49
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