STO - BUY IMO, page-54

For sure there are more than one way to get more gas for the east coast. The short term solution (if the shortage happens tomorrow) is to restrict the exported gas and will be done so to all gas exporters regardless.

STO has made the point and I think it's very logic. GLNG is not STO. STO sells its gas to GLNG. GLNG locked in a contract with STO to sell gas to GLNG. If for any reason, STO raise the gas price to higher than what market can offer to GLNG (for example, if no contract, terms agreeed) then GLNG can buy gas from else where. They are two different companies with different shareholders.

I feel media don't get it when pointing fingers at STO. GLNG and the other two LNGs do the same thing that is buying domestic gas and selling LNG overseas. APLNG buys enough Origin gas for its operation but it doesn't mean APLNG or Origin not contribute to the shortage. The Australian public expect Origin to sell its gas to domestic users as well as any other producers simply because Origin extract the resource from this land and it has the social responsibility with it.

The state is actually looking after its onshore natural resources (federal govt looks after offshore resources). Then why would QLD worries about NSW's shortage when NSW won't let more coal seam gas projects to get up and QLD has to risk its environment to get the gas for NSW?

And I agree with you that for a longer term solutions, there must be more reserve of gas made available to the east coast.