The Global Gas Glut Selected Slides for the South Australian NRC Inquiry into Unconventional Gas (fracking) Bruce Robertson BEc FFin 10 June 2016 Introduction • All investment in the gas industry must be assessed in context of a global gas glut • Excess supply and faltering demand • Globally the contract pricing mechanism is breaking down • East Coast Australia is a high cost gas province • SA onshore gas has even further to travel making it unviable in a post Paris world • SA must compete against cheap piped Russian gas and cheap LNG from the USA • The SA government runs a high risk of backing an industry that will be left stranded in the short term • Source: http://ieefa.org/ieefa-pipe-dream-report-questions-rationale- north-east-gas-interconnector-australia/ 1 Global Gas Glut • The global gas industry closed the 2015 year in a glut with total nameplate liquefaction capacity of 308Mt outstripping import demand for LNG of 245Mt by 26%

It is from this viewpoint that members of DEA are deeply concerned by the serious threats posed to health by fracture stimulation (fracking) for unconventional (whether coal seam, shale, or tight) gas in the South East of South Australia.

From: Kathryn Wright [ ] Sent: Tuesday, 27 January 2015 9:45 PM To: Dupont, Patrick Subject: Submission to Parliamentary Inquiry into fracking in the SE of SA To: Parliamentary Inquiry into fracking in the SE of SA From: Ms Kathryn Wright – Date: 27/01/2015 As a resident of Mount Gambier – I wish to register my deep concerns in relation to the practice of unconventional gas mining (fracking) being undertaken – particularly in the South East of South Australia.

We expect a precautionary approach from our regulators, and, if our water quality or quantity is damaged by unconventional gas production in this location, we fully intend to recover any loss we incur from any parties involved in the unconventional gas production.

From: Judith Ludwig Sent: Friday, January 30, 2015 5:56 PM To: patrick.dupont@parliament.sa.gov.au Subject: Inquiry into Hydraulic Fracturing Judith Ludwig To patrick.dupont@parliament.sa.gov.au SUBMISSION TO THE INQUIRY INTO HYDRAULIC FRACKING BY THE NATURAL RESOURCES AND MANAGEMENT COMMITTEE Having lived in the South East of South Australia all my life I value highly this wonderful area.

Thu 8/01/2015 8:53 AM greg Fracking Hi The fracking is not needed for many reasons. the solar industre is now able to suply all the power needed. the fracking WILL leach into the ground water with the dealy chemicals used.

The science is in on UNCONVENTIONAL GAS AND OIL EXTRACTION.

John Coverdale Dear Sir/Madam, I write to you concerning the inquiry into Unconventional Gas Fracking.

John Coverdale Dear Sir/Madam, I write to you concerning the inquiry into Unconventional Gas Fracking.

Submission Inquiry into Unconventional Gas (Fracking) Submission February 2015 Matt Grudnoff Rod Campbell Mark Ogge About TAI The Australia Institute is an independent public policy think tank based in Canberra.