<
https://reneweconomy.com.au/golden-age-of-gas-did-not-pay-off-for-australian-consumers-new-report-finds/>
"Queensland’s LNG export industry has been a “pretty poor investment” that has
driven up domestic gas prices along the east coast, destroyed demand,
threatened shortages and failed to deliver the royalties promised, a new
analysis suggests.
The state’s LNG sector celebrated the ten-year-anniversary in January 2025 but
a review of the period undertaken by the Institute of Energy Economics and
Financial Analysis (IEEFA) says the industry’s track record has failed to
deliver on the hype.
According to the report, Queensland set up the industry at a time of growing
Chinese demand. Despite objections – including from a Queensland government
paper – warning the decision would directly link the domestic market to the
global gas market in a way that would raise prices, create shortages and lower
demand by a fifth, the lure of a big new export industry proved too strong.
Gas finance analyst Kevin Morrison, author of the IEEFA report, said those
critics have since been proven correct.
“The government noted it at the time, but they didn’t delve into it,” Morrison
said. “There was a lot of hype – but there were also a lot of warnings, people
saying prices are going to go up if we start exporting. And that’s what
happened.”
Since that time Queensland’s three LNG plants continued soaking up gas that
would otherwise be supplied to the east coast either for export or as a
feedstock to keep Gladstone’s LNG plants operating. Morrison said this has in
turn driven up domestic prices.
The result has been “perennial threats of shortages” and higher gas prices for
households, businesses and smaller manufacturers, many of which have been
driven out of business, driving down demand for gas as they exit."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
