gas pricing

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• May 2 2018 at 2:16 PM
  

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    Senex Energy CEO favours open access LNG import terminal

Angela Macdonald-Smith
Senex Energy chief executive Ian Davies has voiced support for AGL Energy's proposed LNG import terminal in the southeastern states but said an open access terminal available to all would be of greater benefit.
Mr Davies told the Macquarie Australia Conference that he was probably one of the few from the east coast gas production sector that supported the $250 million project, saying it would promote a "healthier" market by providing needed gas volumes and aiding with price discovery.
He said that while LNG imports wouldn't depress east coast gas prices they could provide a "cap" and would help buyers by providing "more optionality" over volumes.
"Do I think it's a recipe to decrease prices? Not at all," Mr Davies said. "If you do the maths you sort of end up with $10 [a gigajoule] give or take."

He said he expects prices in future years of $8-$10 a gigajoule at the Wallumbilla gas hub in Queensland. That is before transportation and retail costs to buyers, which could add several dollars more per gigajoule for customers in the southern states.............

Speaking earlier at the conference, Beach Energy chief executive Matt Kay said the company is playing a much bigger role in the east coast gas market since its $1.585 billion takeover of Lattice Energy,  the conventional oil and gas business of Origin Energy. That deal increased Beach's share of east coast gas demand to 15 per cent from 5 per cent.