who sees a rally in sector on carbon price?

The gas sector and in fact the CSG sector will be the biggest potential beneficiary of a deal on a carbon price. That's because CSG is what we have in Eastern Australia where most of the power generation happens. Depends a bit on the price and escalators, but with a ETS also locked in by 2015 that will be equally important for investment decisions. Provided gas and LNG particularly gets some protection (which has been hinted at and business is pushing for) in terms of exports then I can see good times ahead in the sector.

The impact for ESG will happen regardless of whether they choose to sign deals with power generators as the increased demand for gas will see gas prices rise and approach LNG feed in prices inevitably anyway. This means higher reserves as Yaq has often pointed out (when based on a higher doemstic price).


H