Gas propaganda HQ just won’t stop.
One of the nation’s big energy users and producers, Ryan Stokes, says Labor’s proposed 20 per cent domestic gas reservation will wipe out small energy companies and subsidise multinational manufacturers that are neglecting Australia’s long-term economic interests.
The heavyweight pushback from the Seven Group Holdings boss came as Japanese ambassador Suzuki Kazuhiro told an event in Canberra on Wednesday that major interventions in Australia’s gas market threatened to undermine one of its most important trade relationships.
Stokes said the Albanese government’s national gas reservation proposal was unworkable for the Crux gas field 200 kilometres off the West Australian coast and which is unconnected to the domestic gas market. Stokes’ SGH has a 15 per cent stake in Shell’s Crux project and owns 30 per cent of Beach Energy.
As I have said before, if Beach Energy sales and projects are based upon prices achieved by the existence of a gas cartel, then they are operating in a false economy and should shut down.
Gas reservation is not a distortion to the market. It is fixing a failed market.
Moreover, if offshore projects for Beach or Japan require such high prices, then what has that got to do with local supply?
Asian gas prices are currently $25Gj. Crux is thought to have a break-even price of about $12Gj. Go for it, Ryan!
That said, I humbly suggest that our Ryan has a much larger problem than the silver spoon plugged in his cloaca.
That is the looming global gas glut and Asian price around $4Gj in Asia by the time this project gets up.
Stop picking on Australia, which has every right to keep its gas cheap.
Try competing for once.
