QLD gas acreage, page-5

Ash

Im not sure what this guy is smoking,  But I want some, now. 

Gas prices on the east coast are reflective of both supply and demand.  The large CSG fields were specifically developed for export markets, so the comment that 70% of gas going overseas is a nonsensical, as these reserves would not have been developed in that time frame without the LNG projects as there would have been insufficient demand.

The new Queensland permits are 100% dedicated to domestic gas, so in effect, this is a gas reservation policy.  The sales have to go to domestic customers.  What is unclear about that?

As for prices of 5 to 6 $ per GJ, you only have to look at the cost curves to show that this is just not feasible for any new local gas producer.  The comparison with US prices are a joke as US gas prices are low due to abundant Shale gas.  The same process that is current bannned in Vic and NSW following zero scientific input.  If those bans were lifted, added gas would likely be seen and prices would fall. 

Thre is a good article on this in the AFR today by Matt Stephens. Have a look at that for some informed background. 

AL