Gas companies have been accused of leaving gas in the ground that could be profitably sold today, so they can sell the gas more expensively in the future. Apparently, there was not 12 PJ to 20 PJ of gas per annum available to supply Channel Island, 12 kilometres away from the LNG plant, because the gas was needed to supply LNG in the plants 17th contract year, he said. It beggars belief that there was no price at which such small volumes of gas could be liberated from the LNG project. Instead, the Northern Territory is paying for Bonaparte Gulf gas and, in addition to that gas price, has had to underwrite a $130 million pipeline to deliver the gas to Darwin. On face value, it would be hard to find a better example of gross resource misallocation.- Mike Lauer, director of Gas Trading Australia.
Posted on: Tue, 15 Oct 2013 03:41:36 +0000
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