Key policy battlegrounds

Originally posted by Scarpa: ↑

Sigh, people just don't understand gas reservation. The fact you have a gas shortage overeast is a National disgrace and an embarrassment that China is paying less for gas (that comes from LNG in Oz) than residents in Australia overeast is a disgrace. Because domestic markets are too small, multinational LNG producers have no interest in supplying gas into the domestic market, hence why laisser faire economics doesn’t work and why WA has a gas reservation policy (really a policy Charles Court enacted and enacted later on by Carpenter after the fisaco of 2008). What do I mean - take the Gorgon project, it exports 15 million tonnes of LNG per year which translates to 2250 terajoiules of gas per day, whilst total WA gas demand is 1,100 TJ per day served by a number of projects. That 1100 TJ means half WA's power generation is gasfired and industry like Alcoa has gas to turn bauxite into alumina. Now if WA needed another 100 TTJ per day under laiser faire economics it would not get it from Gorgon hence the importance of that reservation policy. Note: that 1,100 TJ comes from NWS, Pluto, Gorgon and a few more and WA can't use all the gas it has access to so allows its exports, but can call on it when it needs it or industry wants access to it.

Even the land of the free, the USA, doesn’t allow LNG exports until the needs of the US economy are met. It is a National disgrace that some States are thinking of building LNG import receivable facilities when the raw gas is in its boundaries and can be moved by domestic pipelines.

Without going over old ground if people are really interested in domgas, and to understand the rubbish arguments overeast that make absolutely no sense on why Australia shouldn't have a domgas policy as put up by vested industry groups (read multinationals) I went through these matters in these posts. The problem overeast is idiotic governments over there, including the National government who thought at the time WA's policy was not good LOL), thought the market would supply gas, but didn't understand market failure so now trying to retrofit a solution. In WA the gas reservation policy is known and investment decisions need to include that in a development, so it is known before development and tehrefore multinationals have to supply because there well and truly is enough gas, just teh desire missing by multinationals who have no interest in local supply because our markets are too small (go through the above Gorgon numbers again LOL). How overeast sorts the issue out is a problem of their own making by believing the tripe of laisser faire economics as it filters to domestic gas.
Post #: 24286068 and Post #: 24289818

At the end of the day, gas is important in an energy mix in providing secure, cheap and reliable power supplies - problem overeast is you lot have stuffed things up. Noting also that gas produces less than half the carbon emissions of coal fired power stations to boot as well.What a stuff - even the land of the free, the USA, must think we are idiots.

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scarpa mate ,have a captain cook at this;

The showdown came in mid-2006 in Perth. United States-based multinational Exxon had a team of executives in Australia running the numbers over the viability of the giant Gorgon gas project off the north-west coast.
According to some present at the meeting, the Exxon team delivered an ultimatum. Unless "every molecule of gas" was available for export, they would walk away from the Gorgon project, in which they held a one-third share.
Carpenter stood his ground. He thanked them for their efforts and said, if that was the case then, regrettably, the project was dead and they had nothing further to discuss.
Within 24 hours, the Exxon executives, in a slightly more accommodative tone, requested another meeting in which they helpfully declared that, having re-crunched the numbers, they were confident they could meet both domestic and export requirements.

What the eastern states should have learned from WA

The west, however, has thrived with a gas reservation policy. There's more than enough for export, and domestic users are paying far less than their east coast cousins.
Here are a few snippets from respected energy research group EnergyQuest.
"It's well past the time for those of us on the east coast to eat humble pie about West Australian government policy," it said.
"So far, most of the criticisms about the west's gas reservation policy have failed to materialise.
"Has it impeded LNG investment? No. Has it killed further gas development? No.
"More pointedly, has the absence of a domestic gas policy and high prices stimulated an east coast domestic gas exploration and investment boom? Unfortunately, not."
Deregulation largely has been a wondrous thing, freeing up capital, industry and individuals to pursue new ventures.
Sometimes, however, regulation is needed to save us from ourselves. Think about that the next time you check that outrageous gas bill stuck to the fridge.

https://www.abc.net.au/news/2017-10-23/the-case-for-an-east-coast-gas-reservation-policy/9074896
Viva carpenter

Raider