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‘It’s a schmozzle’: Australia, second largest gas exporter, on track for 2020 gas shortage

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The country’s first floating LNG import ship has just been secured by Australian Industrial Energy, in an attempt to remedy the nation’s forecast 2020 gas shortage.

Due to start pumping imported gas into the NSW and Victorian marketplaces by 2020, the NSW Government has gone about fast-tracking the process to safeguard our energy security, declaring the ship a critical piece of infrastructure whose development should be prioritised.

But Michael McLaren can’t get his head around why the plan, which will involve teaming up with a Norwegian company to bring the floating import terminal to Port Kembla, is even necessary.

For Michael, the pertinent question is this: if we have so much gas to export, why are we destined for an imminent gas shortage?

“This is a chapter in a very, very macabre narrative that this country has developed on energy,” says Michael.

“Take coal for example. We really should have the cheapest, most abundant energy grid in the world. But we don’t. Go back two years, South Australia had some of the highest prices and some of the least reliable energy distribution in the world. It’s just ridiculous.”

“And here we have gas. We’re flooded with the stuff, we’ve got so much that we’re exporting it all over the place to the point of being the second biggest exporter in the world.”

“And yet, we have these forecasts saying that if we carry on the way we’re going, we’re going to have a gas shortage at home. That’ll drive up local prices, industry won’t be able to access Australian gas, so they’ll shut down.”

“It’s a schmozzle.”

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