Business Spectator: Air coming out of the gas boom

The profit model that has underpinned the massive investment in Australian gas suddenly looks in danger.

We have projected big rises in demand, with a view to supplying the Asian market, as well anticipating power plants to switch from high-emission coal.

But we planned our North West Shelf and Gladstone expansions before we realised the extent of the American shale and coal gas deposits. Now, we must also take into account the long term implications of the Russian's decision to pipe gas from Siberia directly into China and also to Vladivostok, where it will be exported as LNG into Australian markets.  MORE