East Coast demand

Mr Robertson is arguing that unless there's a big international price increase, Northern Territory gas will be too expensive for either the domestic or export markets.
"You cannot be producing gas at $7.50 and selling it for $6.90 on the spot market in Japan, as you are currently, it just doesn't work," he said.
A photograph of Bruce Robertson from the Institute for Energy Economics and Financial Analysis
Bruce Robertson thinks an NT fracking industry will have unviable costs of production (ABC News: Jane Bardon)
But the companies believe the Territory's remote Beetaloo Basin, south of Mataranka, contains such a large and high quality resource, it shouldn't be written off.
"Commerciality at this point cannot be known without more data," Mr Close said.
"It will really come down to the well performance, the amount of gas that each well produces, the amount of liquids that each well produces and the cost of those wells.
"And until we know those data, these predictions made by analysts, they aren't accurate, they're based on false assumptions without data."
More work is needed: Santos
According to Santos chief Kevin Gallagher, the economics — and whether development is worthwhile — are unknown until the explorers can appraise and test the resources underground.
"Santos is positioning itself as the lowest cost onshore developer of gas resources across onshore Australia, and as such, we are confident that if it can be developed economically Santos will be the company that can do that," Mr Gallagher said.
Central Australian producer Central Petroleum is continuing to develop its operation in Mereenie field near Alice Springs, because that doesn't require fracking.
These giant tankers carrying Australian gas to Asia are the reason why domestic prices will stay high, writes Michael Janda.
Its managing director Richard Cottee is bullish about the prospects for expanding the Territory gas industry because he expects the cost of piping gas will come down.
"COAG and the Federal Government have bit the bullet of pipeline reform, the first tranche of which went through in August," he said.
"That will reduce the costs of piping gas, and also give the economic signal to encourage more investments in increasing supply."
Deloitte predicts the global gas glut will last until 2024.