In recent weeks, Australia has been honored by the consequences of the supply of coal, the failure of several coal-fired power plants and the sharp rise in world energy prices. Along with the increase in electricity prices, the demand for gas has increased, also due to the coming cold weather, according to the Reuters agency.
The Australian manufacturing sector, which is the country’s main consumer of electricity and gas, is facing soaring costs. High energy prices have killed the company, which has long-term contracts.
Brickworks, the country’s largest brick maker, has a long-term gas contract and an average of ten Australian dollars (164 K) per gigajoule (GJ). The government capped prices at 40 Australian dollars (656 K). This is a bag, according to Brickworks.
If we had to pay the current spot price after the contract expired, we would undoubtedly set up the downpours and move production abroad, said Lindsay Partridge, CEO of Brickworks for Reuters.
The company also owns Glen-Gery, a company in the United States. There, in a gas crash, you only pay those US dollars (71 K) for GJ. If the contract expires and you have to pay 40 Australian dollars, you would be able to buy gas for those dollars in the US, then it is quite easy to spend it, Partridge said.
Boral, which also produces building materials, also grows in energy costs. Due to energy prices, it had to limit traffic. We were forced to temporarily limit some of our activities and, unfortunately, there was no other option, no money to grow (costs) directly on the customers, said the director Zlatko Todorcevski, a company.
Australia is one of the world’s largest exporters of coal and liquefied natural gas (LNG). The crisis has shown the need to secure gas supplies for the domestic market, Reuters reported. Gas prices have not tripled since the start of LNG’s entry from 2014.
In western Australia, where 15 per cent of gas is reserved for local consumption, domestic prices represent a fraction of the capped entry price.
There are calls from many quarters that something should be done. Many people point to gas import controls, said Energy Policy Director Tennant Reed of the Australian Industry Group’s employer.
According to Minister Madeleine King, who is in charge of the issue, it is being discussed about the individual options.