Losing friends with an expanding natural gas export sector  

Posted by Big Gav in , , ,

The Business Spectator has a look at the downside of Australia's expanding natural gas / coal seam gas export sector - Losing friends with an expanding gas export sector. When exports of shale gas start from the US I imagine a similar debate will start up there - cheap gas only lasts as long as you aren't exposed to global markets.

The export gas multinationals are no friend of Australian manufacturing. There is only one reason that the gas prices are set to at least double over the next few years – gas export companies will force Australian consumers to compete with the Asian market for gas.

That’s the true cost of opening up coal seam gas mining and allowing gas from eastern Australia to be exported. And no amount of drilling for more CSG will either secure the gas for domestic users or keep the price down. The simple reason for this is that no matter how much gas is found, it can all be exported.

The gas export terminals currently under construction will have a massive capacity of 1637 petajoules. That’s more than double all the gas we use in Australia at the moment. But according to analysis done by Core Energy for the Australian Energy Market Operator, there are over 6000 petajoules of additional proposed LNG export facilities, enough to quadruple the export capacity currently under construction. These include several additional liquefied natural gas 'trains' at the existing Curtis Island facilities in Gladstone and new facilities at existing ports in Queensland and New South Wales.

The Australia Institute recently used AEMO gas demand and price projections to calculate the increased cost of gas to the manufacturing industry in the Gladstone region as a result of CSG exports. It found a massive cost of $2.9 billion over the next 10 years, to be paid by just a handful of manufacturers.

This is threatening the viability of these industries. We are effectively allowing multinational gas exporters to displace our manufacturing sector. And it’s not just as a result of the gas price. The gas expansion is also displacing manufacturing by keeping the Australian dollar higher than it would otherwise be, and creating a severe skills shortage.

1 comments

This is exactly the point that the Melbourne born CEO of Dow Chemical makes about manufacturing in the USA:

http://www.nytimes.com/2013/08/16/business/energy-environment/foreseeing-trouble-in-exporting-natural-gas.html?pagewanted=all

Get that? 90% of our natural gas is exported!

And I thought that our mineral wealth belonged to all australians...

Post a Comment

Ads

Ads

Statistics

Locations of visitors to this page

blogspot visitor
Stat Counter

Total Pageviews

Ads

Books

Followers

News

Loading...

Blog Archive

Labels

australia (582) global warming (365) solar power (338) peak oil (321) electric vehicles (193) renewable energy (182) wind power (172) ocean energy (156) csp (144) geothermal energy (142) smart grids (139) solar thermal power (133) tidal power (133) coal seam gas (127) nuclear power (122) oil (116) lng (112) geothermal power (111) solar pv (110) china (109) iraq (108) energy storage (105) green buildings (104) natural gas (102) agriculture (85) biofuel (76) oil price (76) smart meters (72) wave power (68) electricity grid (63) energy efficiency (63) uk (63) google (55) coal (53) internet (51) food prices (48) shale gas (48) surveillance (48) bicycle (47) big brother (47) thin film solar (41) canada (39) biomimicry (38) ocean power (37) scotland (36) new zealand (35) air transport (34) algae (34) water (34) queensland (32) credit crunch (31) politics (31) shale oil (31) bioplastic (30) concentrating solar power (30) california (29) geoengineering (28) offshore wind power (28) population (28) cogeneration (27) saudi arabia (27) resource wars (26) arctic ice (25) batteries (25) censorship (25) cleantech (25) woodside (25) bruce sterling (24) drought (24) tesla (24) ctl (23) economics (22) carbon tax (20) coal to liquids (20) distributed manufacturing (20) indonesia (20) iraq oil law (20) limits to growth (20) origin energy (20) brightsource (19) buckminster fuller (19) rail transport (19) ultracapacitor (19) santos (18) ausra (17) exxon (17) lithium (17) cellulosic ethanol (16) collapse (16) electric bikes (16) mapping (16) michael klare (16) ucg (16) atlantis (15) bees (15) geodynamics (15) iceland (15) psychology (15) concentrating solar thermal power (14) ethanol (14) fertiliser (14) al gore (13) ambient energy (13) biodiesel (13) brazil (13) carbon emissions (13) cities (13) investment (13) kenya (13) biochar (12) bucky fuller (12) matthew simmons (12) otec (12) public transport (12) texas (12) victoria (12) chile (11) cradle to cradle (11) desertec (11) energy policy (11) internet of things (11) lithium ion batteries (11) terra preta (11) amory lovins (10) fabber (10) gazprom (10) goldman sachs (10) gtl (10) hybrid car (10) severn estuary (10) tinfoil (10) toyota (10) volt (10) alaska (9) biomass (9) carbon trading (9) distributed generation (9) esolar (9) fuel cells (9) jeremy leggett (9) pge (9) sweden (9) afghanistan (8) antarctica (8) arrow energy (8) big oil (8) eroei (8) floating offshore wind power (8) four day week (8) guerilla gardening (8) linc energy (8) methane (8) methane hydrates (8) nanosolar (8) natural gas pipelines (8) pentland firth (8) relocalisation (8) us elections (8) western australia (8) bloom energy (7) boeing (7) chp (7) climategate (7) copenhagen (7) fish (7) stirling engine (7) vinod khosla (7) airborne wind turbines (6) apocaphilia (6) bolivia (6) ceramic fuel cells (6) cigs (6) futurism (6) jatropha (6) local currencies (6) nigeria (6) ocean acidification (6) saul griffith (6) scenario planning (6) somalia (6) t boone pickens (6) space based solar power (5) varanus island (5) garbage (4) kevin kelly (4) low temperature geothermal power (4) oled (4) tim flannery (4) v2g (4) club of rome (3) global energy grid (2) norman borlaug (2) peak oil portfolio (1)