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Soaring gas prices trigger fears of Tasmania-style crisis


Source: AFR, 1 July 2016

Soaring east coast gas prices due to the cold snap and rising demand from the Queensland LNG projects have triggered fears among manufacturers about a Tasmanian-style energy crisis that would lead to losses.

The first prolonged period of chilly temperatures this winter stretching along the east coast has come just after the start up of the fifth of Queensland's six LNG export trains and has driven short-term wholesale prices sharply higher over the past week.

Wholesale gas prices in Sydney for Thursday reached almost $29 a gigajoule, about 60 per cent higher than their peak in 2012.

The spike means industrial gas buyers relying on the short-term market for part of their supplies will be paying more than three times as much as Japan is paying for importing LNG.