Nov 10, 2017

Is high Chinese demand about to wreck the government’s gas deal?

A surge in demand for LNG in China is dragging gas prices upward, which spells trouble for the government's effort to keep a lid on domestic prices.

Glenn Dyer and Bernard Keane

Crikey business and media commentator / Politics editor

The government's deal to limit Australian domestic gas price rises is about to come under enormous pressure from the booming export market in Asia and soaring prices -- which could lead the government to dust off its threatened reservation policy again.

New data emerged yesterday showing Chinese imports of iron ore, coal, copper and oil fell sharply in October -- there was a 23% slump in iron ore imports to their lowest level since February 2016; copper imports also fell to their lowest level since early last year; coal imports were down 12% month on month. Oil also fell, but that was a one-off due to special factors, and can be ignored for now.

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3 thoughts on “Is high Chinese demand about to wreck the government’s gas deal?

  1. Roger Clifton

    If we are to eliminate all coal, oil and gas by 2070, this period of high prices is the time that activists should be demanding a schedule for the replacement of all three. It takes only a little stiffening of the spine to insist that gas should be expensive relative to non-carbon alternatives. However, there seems to be a pervasive silence on the matter.

  2. old greybearded one

    You cannot ask these energy companies anything. You tell them, after all China sure as hell would. They have stolen our resources by not paying for them, well enough of that crap.

  3. AR

    The government could kick the living shite out of the LNG industry to great public acclaim – the next best thing to a khaki election?
    A bit hard to meet O/S contracts without a federal export licence.
    Jes’ sayin’…

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