More bullshit today from a gas cartel that appears beaten.
Australia’s largest gas companies are preparing for a potential legal fight against Labor’s proposed east coast gas reservation scheme, with producers seeking advice ahead of the release of legislation.
Industry sources say producers are examining whether the Albanese government’s reforms can be challenged on constitutional, administrative or international trade grounds.
Potential legal challenges were also discussed when senior executives gathered for a recent board meeting of Australian Energy Producers, according to industry sources, highlighting how the dispute has escalated from lobbying efforts to preparations for a possible court battle.
Let them come. Tying them up in the courts for years is far cheaper than letting them gouge us for all eternity. Tens of millions versus hundreds of billions.
Moreover, this will only tear through the cartel’s social licence to operate all the quicker.
It will fold like a cheap suit first.
Senex Energy chief executive Darren Stevenson confirmed the company, which is owned by Hancock Prospecting and South Korea’s POSCO International, had explored legal avenues after details of the proposal emerged.
“Hopefully, that gives you a little bit of colour about how diabolical we think this is.
Balls, Stevo. Diabolical for you, maybe. Gina might give you the arse. For the rest of us, it means cheaper gas for industry and lower power prices for everyone, which will help ease inflation.
Producers argue that the proposal, rather than increasing supply, merely redistributes existing gas by compelling exporters to divert volumes into the domestic market. They contend that the policy risks suppressing prices without creating any incentive to develop new fields, ultimately worsening the supply outlook over the longer term.
Is that what happened in WA? No. In fact, it has not occurred anywhere with domestic reservation.
| Country | Domestic reservation | Approx. wholesale domestic gas price* | Compared with Australia’s east coast |
|---|---|---|---|
| Qatar | ✅ State allocation | US$1–2/MMBtu | 80–90% cheaper |
| Saudi Arabia | ✅ Domestic priority | US$1–2/MMBtu | 80–90% cheaper |
| UAE | ✅ State allocation | US$2–3/MMBtu | 70–85% cheaper |
| Malaysia | ✅ Petronas allocation | US$3–5/MMBtu | 50–75% cheaper |
| Indonesia | ✅ Domestic Market Obligation | US$4–7/MMBtu | 30–60% cheaper |
| United States | ❌ No formal reservation | US$3–4/MMBtu (Henry Hub) | 60–70% cheaper |
| Norway | ❌ No reservation | European market pricing (typically US$8–12/MMBtu in recent years) | Similar to or slightly cheaper than Australia’s east coast |
| Western Australia | ✅ 15% reservation | A$5–7/GJ | Around half the east coast price |
| Australia (east coast) | Proposed 20% obligation | A$10–14/GJ (recent years) | Baseline |
Note that Norway has no domestic reservation either, with disastrous results. The US does have a reservation in the form of a much stronger project approval process.
Good luck in court, you wankers.
