Tuesday, April 17, 2012

Australian Natural Gas Producers Holding Out on Electrical Generators

This would be funny if it weren't so serious.
From The Australian:
Shortage of gas may hit power producers
ELECTRICITY generators have revealed they are having trouble finding long-term gas supplies at any price, adding to doubts about the government's ambitions to use gas as a "transitional fuel" to a low-carbon economy. 
The National Generators Forum fears resource owners could be trying to "warehouse" their reserves for lucrative future export markets instead of offering gas to the domestic market, saying some of its members have been unable to lock in long-term supply contracts.

"These export markets may not proceed for many decades into the future, resulting in a scarcity of supply," the group says in a submission to the government's draft energy white paper.

"This is a concern as warehousing of gas supplies from domestic market could limit the ability of the sector to utilise gas-fired generators to reduce carbon emissions," says the submission, obtained by The Australian....MORE
No worries on that score mate, it's called Global warming. the gas will get burned somewhere. I'd worry more about electricity prices.