3 November 2015
White elephant: NT Gas pipeline to Eastern states won’t stack up with gas glut
The NT Government’s proposed North East Gas Interconnect pipeline has been thrown further into economic doubt this morning with new data showing there will be an oversupply of gas in Australia and globally in coming years.
Latest analysis from respected global energy consultancy Wood Mackenzie has put a low floor price on Asian and European LNG spot prices later this decade.
The firm has said that while gas export terminals using conventional gas (like those near Darwin utilising conventional offshore gas) will be unaffected, export terminals relying on more expensive unconventional and fracked gas could face shut downs.
“The Giles Government’s pipe dream is facing an abrupt wake up call in the face of a gas supply glut around Australia and the world,” said Naomi Hogan of Frack Free NT.
“It appears a very risky investment to pour around a billion dollars into a gas pipeline that may not have any customers at the end of it.”
“Chief Minister Giles wants a new pipeline to drive new fracked gasfields across the Northern Territory, but he’s facing opposition from communities that don’t want water supplies, health and other viable industries put at risk from dangerous fracking.”
“Fracked gas is too expensive to stack up, and to risky go forward. Economic sense will put both the North East Gas Interconnect pipeline and fracking gasfields on the back burner,” she said.
Naomi Hogan, Frack Free NT, 0401 650 411
Full summary in today’s Business Day: http://www.smh.com.au/business/energy/lng-prices-have-further-to-fall-amid-supply-glut-wood-mackenzie-20151030-gkmqhr#ixzz3qNNHZWfw
Australian Energy Market Operator showing no gas supply gaps in Australia require NT gas: http://www.aemo.com.au/Gas/Planning/Gas-Statement-of-Opportunities