Good article in the AFR by Angela M-S, due to pay wall, I shall...

Good article in the AFR by Angela M-S, due to pay wall, I shall place my own stamp on what the article says
============================================================
Manufacturers are so fearful of the looming squeeze in the east coast market that has already seen prices surge and under the belief that nothing can save them from the risk of having gas supplies curtailed come mid-year

Article states that "Mid-2017 until late 2018 is really the crunch point in supply and more concerning is that heavy gas users are struggling to source long-term supplies of gas. Let's hope that Richard indeed finds those missing Gas Sales Agreements which matey help those struggling to secure new gas contracts.

It's quite frightening for manufacturing as There's a reasonable chance that there could be curtailments for industrial customers during cold or hot weather – probably more likely cold weather – as supply to retail customers will be obviously a priority.


Thanks to our South Australian brothers and the recent black out, gas will also have to be used more for power generation to meet emissions reductions targets, pointing to "the greatest supply challenge" between 2018 and 2024, the Australian Energy Market Operator says. Consultancy EnergyQuest estimates a supply shortfall reaching 172 petajoules in 2020 growing to 205PJ five years later.

What will suite Central Petroleum shareholders is that reforms are under way to increase transparency in the east coast gas market and improve pipeline regulation but the fundamental problem of inadequate supplies has not been solved.

Industrial buyers complain of a lack of choice on gas supplies that leaves them over a barrel when it comes to pricing. But but but, with Central Petroleum soon to become a major gas provider through the NGP, industrial buyers will be well relieved come mid 2017 where Amadeus, Palm Valley and Ding gas fields start pump gas into the gas pipelines

David Ritchie, general manager at Victoria Wool Processors in Laverton North in Melbourne's west, said that when he sought to replace a contract from EnergyAustralia expiring at the end of 2016, three out of four retailers could not even make a supply offer.

EnergyAustralia, the country's third biggest power and gas retailer, said its priority was to help customers find sources of gas in an industry that has been hampered by drilling and regulatory restrictions. Today there is less gas available in the market, despite Australia's abundant natural resources, and it has been a challenge to secure supply on behalf of some customers.

The Australian Competition and Consumer Commission was clear in its recent inquiry into east coast gas markets that consumers in NSW and Victoria face significantly higher prices without opportunities to develop new gas supplies

The risk for manufacturers was more around prices and long-term contracts given uncertainty about future gas supplies because production of conventional gas is peaking in Australia, while gas bans are restricting access to unconventional resources.

The manufacturers looking for contracts that will take them into the next decade are running up against a problem for the producers about the tremendous uncertainty of being able to develop onshore gas.

http://www.copyright link/business/...s-as-east-coast-squeeze-looms-20170103-gtlkfr