Cooking up a price rise
The Australia Institute released this report on the effect of CSG exports on gas prices. It makes the following points:
- Households in Eastern Australia are about to be hit with more gas price increases which could see wholesale prices triple.
- The price rises are caused by commencement of gas exports from the huge LNG export plants being built in Gladstone, Queensland, linking Australian gas prices to high Asian Market prices.
- Environmental protection and opposition to CSG have nothing to do with these price rises.
- Drilling for more gas, in NSW or elsewhere, will do nothing to keep prices down or secure gas for industry or households, because the more gas that is produced, the more the LNG export plants can be expanded to export it.