Bell Bay Aluminium, located in Tasmania, Australia, has raised concerns over increased and uncompetitive gas prices due to hiked in Australian exports and restrictions on exploration. The company consumes substantial amount of Tasmanian gas.
{alcircleadd}Bell Bay Aluminium smelter produces 190,000 of aluminium per annum. It is owned and operated by Pacific Aluminium, a wholly owned subsidiary of Rio Tinto Alcan.
Ray Mostogl, general manager of Bell Bay Aluminium, said, “Current state and federally legislated mechanisms which were intended to create optimum market conditions had been unable to deal with recent distortions in supply and demand due to increased export and restrictions on accessing new supplies.”
“As a gas user, BBA is extremely concerned about the potential for inflated and uncompetitive gas pricing,” he added.
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He made this statement after the Australian Energy Market Operator announced one week ago that gas shortages could lead to gas crisis and power shortages.
The Tasmanian Minerals and Energy Council, which represents major users, said wholesale gas prices offered by suppliers for 2018 were 30 per cent higher than anticipated at $8 to $9 a gigajoule.
The Australian Energy Market Operator anticipated that there would not be enough gas to meet projected summer demand from 2018-19 to 2025.
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