Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here’s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Not all gases are the same

By Stewart Taggart - posted Wednesday, 5 December 2012


The costs of building LNG plants in Australia rises by the month.

What's going on?

For their part gas industry executives finger phantoms: poor productivity, government regulation, stroppy greenies etc. etc.

Advertisement

By making life hard for LNG, they say, the costs of LNG projects in Australia are rising, they say.

A better answer, however, is this: LNG is a bad, uneconomic deal for Australia. Pipeline gas exports to Asia would be cheaper. That's what prices are saying.

Roughly $160 billion of LNG plants are now planned for Australia. That's roughly 16% of GDP. By the time you read this, prices probably will have risen again.

The goal of all this LNG infrastructure will be to export roughly 55 billion cubic meters per year of Australian natural gas to China, Japan and South Korea.

Here at Grenatec, we estimate a natural gas pipeline of equivalent capacity could be built between Australia and North Asia for between $125-200 billion -- depending on topology.

We reach our figures by analysing prices of comparable natural gas pipelines elsewhere. These include Langeled in the North Sea, Nordstream in the Baltic Sea and the proposed Trans-ASEAN Gas Pipeline in Southeast Asia.

Advertisement

These show isn't Australia isn't some idiosyncratically high-priced economy. Australia's productivity, regulation and greenies are no different than elsewhere.

What's different is that Australia's gas industry is ignoring what prices are now trumpeting: LNG is a bad long-term economic deal.

There's two reasons for this.

  1. Pages:
  2. Page 1
  3. 2
  4. 3
  5. All

To read more, download Grenatec's two studies "Pan-Asian Energy Infrastructure" (http://www.grenatec.com/dl/grenatec.paei.pdf) and "Pan-Asian Gas Pipeline" (http://www.grenatec.com/dl/grenatec.pagp.pdf)



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

20 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Stewart Taggart is principal of Grenatec, a non-profit research organizing studying the viability of a Pan-Asian Energy Infrastructure. A former journalist, he is co-founder of the DESERTEC Foundation, which advocates a similar network to bring North African solar energy to Europe.

Other articles by this Author

All articles by Stewart Taggart

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 20 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Deals from Sponsor
Flipit.com Australia
Get free express shipping on your Halloween outfit when you spend $125 or more at asos with this discount code
Costume Box coupon code: Get 20% off when you spend $80 or more
Light in the Box coupon code: Get $9 off when you spend $83 on Halloween party dresses
Halloween coupon code: Get 10% off on your Halloween costume and accessories
Get your Halloween cards and invitations for 20% less when you spend $40 or more with this Hallmark Cards coupon code
Advertisement

About Us Search Discuss Feedback Legals Privacy