Energy company Santos is at it again, claiming that there is no need to curb gas exports because Australia has an abundance of gas just waiting to be extracted. What’s the scam?
The scam is that repeating a lie doesn’t make it true. Australia does have a lot of gas, but as most of it is exported, it drives up domestic gas prices in the Eastern states, keeping the price high while fuelling the profits of Santos and other gas producers (and burning the planet).
There is no shortage, just a potential shortage of domestic supply.
According to Joshua Runciman at the Institute for Energy Economics and Financial Analysis (IEEFA), “The tightness in the east coast gas market largely stems from Santos’ Gladstone LNG plant, which siphons gas from the domestic market for export. Gas demand is already declining on the east coast as households realise the financial benefits of electrification.”
Stuart Long of The Australian Institute (TAI) concurs, “More than 80 per cent of the gas produced in Australia is exported or used to liquefy gas (a hugely energy-intensive process) so that it can be shipped overseas.”
Santos is engaging in a scare campaign, claiming that Australia might not have enough gas for domestic use without new gas fields. And the Government is buying it, refusing to introduce sensible policies that would both ensure the supply and reduce costs for consumers, while greenlighting new projects.
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IEEFA’s Runciman says, “Governments should do more to help households and industry electrify and improve energy efficiency. This will lower household energy bills while avoiding the need for costly new gas supply and infrastructure, which will only increase energy bills.”
If implemented quickly, additional measures to lower demand could fully address the risks of supply shortfalls.
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