November 11, 2016 Read More →

Does Queensland Need an LNG Industry?

Lachlan Barker for Independent Australia:

As Bruce Robertson of IEEFA told us back then, US$50 is the long term average for the oil price – which the price of contract sold LNG is pegged to – and that’s what it is at now.

With no foreseeable oil price rise, the current loss-making price that the LNG companies of Gladstone and the Downs is getting will not go up and, so sadly for the Downs and Gladstone, the bust is here to stay.

Most oil analysts don’t expect the current oil glut to clear before 2020 and some say it will go on longer than that.

I am one of those and project that the LNG plants of Gladstone will continue loss making for the rest of their existence until Santos, Origin and Shell eventually give it up.

Does Queensland Need and LNG Industry?

Share This

Comments are closed.