Quote:
Originally Posted by opendoor
It's also important to recognize the downsides of LNG export, including higher domestic gas prices and potential supply restrictions. Australia is a good example. The economic benefits of LNG export are significant, but it comes at the cost of wholesale gas prices there being about 5x higher than they are in Canada. And because producers in most states are not obligated to keep any of the gas they produce in the country, Australia is currently anticipating a significant gas shortage in 2023 in the eastern part of the country. They're trying to convince producers to set aside gas that's not already under contract to save it for domestic consumption, but that hasn't happened yet.
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For Australia, that problem may be unique to them. Most of the Australian states are against fracking, thereby limiting onshore production that could be used for domestic consumption. Something that is unlikely to happen in Alberta or even BC.
https://www.premier.vic.gov.au/enshr...acking-forever
https://smallcaps.com.au/fracking-la...and-territory/
This combined with many coal power plants getting to end of life with no replacement means Australian electricity prices have become extremely high.