I just googled Howard Gas Contracts, here's what google AI said. Thanks Johnny.
The specific "Howard gas contracts" you're referring to, likely the Woodside-CNOOC agreement, are contracted to stay at basement prices until 2031.
Here's a more detailed breakdown:
The Deal:
The contract involved Australia's gas exports of 3 million tonnes a year to China, with the price staying at "basement prices".
Unusual LNG Deal:
The LNG deal was unusual as it included other arrangements such as training for CNOOC employees in Australia, which is still continuing.
Political Ties:
There were a lot of political and diplomatic ties involved with the deal, it was a package influenced by political motivation, it wasn't just a sale.
Potential Shortfalls:
Australia's east coast is expected to have a shortfall of domestic gas supply from 2027 unless new gas fields are soon brought online.
Gas Policy Mess:
This situation highlights how Australia's gas policy has led to a situation where Australians are paying world prices for domestically-produced gas, while gas companies prioritize exports to higher-priced Asian markets.
