Oil Rally Confirmed, page-899

Break Even at $32/barrel(Equivalent) on East Coast of Australia is difficult.
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Two Reasons
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Santos & ORG Sells Gas to Australian Consumers at around $5/mmbtu. $1 goes to transmission pipeline(APA?).
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If East Coast gas price are kept high (which they are keeping) then Feed Stock Prices to GNLNG(Santos)/APLNG(Origin) rises(they do buy 50% feedstock from third parties) and margin shrinks miserably. If they reduce the gas price then margin from Australian customer drops and they lose money.
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Almost 25% of Santos revenue comes from Australia Consumers
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....So it is a Two Edged Sword for both ORG and Santos.
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They can't have both ways. Sell Gas to Local Customers at around $5/mmbtu and expect others to sell feedstock gas for GLNG/APLNG at lower price.
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