AGL looks to future with Crib Point project

Power giant AGL Energy says the energy price crash will not dampen its appetite for developing Australia’s first gas import plant, with market volatility likely to eventually subside, leaving a looming supply shortfall forecast for the nation’s east coast.

The Australian is reporting that oil has plunged by 60 per cent this year to $US24 a barrel while average wholesale gas prices on Australia’s east coast fell by 38 per cent during the 2019-20 summer compared with a year earlier and averaged under $6 a gigajoule in February for Victoria and NSW.

Falling domestic tariffs threaten to undermine the economics of Australian LNG import projects, which are expected to offer imported fuel to industrial buyers in the $10-12 a gigajoule range.

However. AGL said it would look beyond near-term price ructions when assessing its Crib Point development in Victoria.

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