Australia's largest domestic wool producer may have to close its...

Australia's largest domestic wool producer may have to close its doors because it is unable to get a new natural gas deal, potentially putting 40 people out of work.
Key points:

• Wool processor offered gas contract for double current price
• General manager calls for limits on gas exports
• Industry calls for more exploration

Several suppliers told Victoria Wool Processors at Laverton North, in Melbourne's western suburbs, they were unable to meet the business's demands for gas next year because of a supply shortage.

It takes 110,000 gigajoules of gas to heat and treat the 12,000 tonnes of greasy wool the company produces every year.

David Richie, the company's general manager, said the current contract with Energy Australia expires at the end of the year.
"It's a scary thought to go into Christmas not knowing that you've secured a vital ingredient," he said.
   "You can't run these plants without gas."

The business is not large enough to buy gas wholesale and retailers have offered quotes for double the current price, which Mr Richie says will make the company unviable.

In a statement, Energy Australia said conditions in the gas market have made it harder
to secure supply.

"Australia depends on reliable and affordable supplies of gas to warm homes, power businesses and to sustain jobs, but today there is less gas available in the market, despite Australia's abundant natural resources," a statement read.

http://www.abc.net.au/news/2016-12-02/victoria-wool-processors-gas-shortage/8086732