1 00:00:00,080 --> 00:00:02,080 Speaker 1: So the band aid for the power crisis seems to 2 00:00:02,080 --> 00:00:04,960 Speaker 1: be this deal between methodics and contact and genesis, so 3 00:00:05,040 --> 00:00:07,800 Speaker 1: methodics basically and closer operation to locks over sell their 4 00:00:07,880 --> 00:00:10,600 Speaker 1: gas to the power companies. Anyway, the Major Electricity Users 5 00:00:10,640 --> 00:00:13,000 Speaker 1: Group chair John Harborder is with us on this, John Morning, 6 00:00:13,880 --> 00:00:15,600 Speaker 1: Good morning. Is it a little bit band aid? 7 00:00:16,760 --> 00:00:19,280 Speaker 2: Yeah, I mean I think it's definitely a short term solution, 8 00:00:19,440 --> 00:00:21,840 Speaker 2: like to help us get it through the current situation 9 00:00:22,000 --> 00:00:24,160 Speaker 2: we're in, but obviously it doesn't address any longer term 10 00:00:24,200 --> 00:00:27,120 Speaker 2: issues we have with energy supply or the electricity market. 11 00:00:27,240 --> 00:00:29,360 Speaker 1: And as part of that announcement yesterday, the coal site's 12 00:00:29,400 --> 00:00:32,080 Speaker 1: being bumped up as well as coal readily available gets 13 00:00:32,080 --> 00:00:33,839 Speaker 1: here quick enough and we can fire up hunt lead 14 00:00:33,840 --> 00:00:34,599 Speaker 1: to full capacity. 15 00:00:36,040 --> 00:00:38,280 Speaker 2: We're certainly importing large amounts of coal at the moment. 16 00:00:38,880 --> 00:00:42,360 Speaker 2: We've exhausted a number of our sort of domestic stock 17 00:00:42,479 --> 00:00:44,839 Speaker 2: pile of coal, so we are having to import it 18 00:00:45,320 --> 00:00:47,440 Speaker 2: in pretty large amounts. But the port seem to be 19 00:00:47,479 --> 00:00:50,040 Speaker 2: coping with it really well, so pretty relaxed on that front. 20 00:00:50,240 --> 00:00:52,120 Speaker 1: Is LNGG going to be a thing at all from 21 00:00:52,120 --> 00:00:54,040 Speaker 1: the government's point of view, as anything in that department 22 00:00:54,040 --> 00:00:55,040 Speaker 1: going to happen to you know or not? 23 00:00:56,160 --> 00:00:57,600 Speaker 2: Well if I don't know, but I think the government 24 00:00:57,600 --> 00:00:59,680 Speaker 2: will be looking at all options, and people in the 25 00:00:59,720 --> 00:01:01,760 Speaker 2: market it or in the sector have been looking at 26 00:01:01,880 --> 00:01:04,240 Speaker 2: LNG as an option for a few years now, so 27 00:01:04,440 --> 00:01:06,080 Speaker 2: I would imagine the government's looking at it. 28 00:01:06,440 --> 00:01:10,240 Speaker 1: So will this deal announced yesterday fix us spring arrives, 29 00:01:10,400 --> 00:01:12,720 Speaker 1: demand goes down and with throw it for another winter? 30 00:01:12,880 --> 00:01:14,240 Speaker 1: Is that fair or a bit simplistic? 31 00:01:15,360 --> 00:01:19,560 Speaker 2: I think that's overly optimistic. Mic there's no guarantee we're 32 00:01:19,600 --> 00:01:22,240 Speaker 2: going to get an influx of rain in the hydro lakes. 33 00:01:22,640 --> 00:01:25,600 Speaker 2: We certainly hope that will be the case, and longer 34 00:01:25,680 --> 00:01:28,720 Speaker 2: term as well. Simply, our gas fields have less gas 35 00:01:28,720 --> 00:01:30,960 Speaker 2: in than than we thought, and that's not a short 36 00:01:31,040 --> 00:01:33,600 Speaker 2: term solution to that. We've either got to explore more 37 00:01:33,880 --> 00:01:36,480 Speaker 2: and find more, or we're going to have to import it. 38 00:01:36,480 --> 00:01:39,520 Speaker 2: It's one of sort of the weird things about being 39 00:01:39,640 --> 00:01:41,959 Speaker 2: more and more reliant on wind and solar is that 40 00:01:42,040 --> 00:01:45,280 Speaker 2: actually makes you more and more reliant on gas and coal. Exactly, 41 00:01:45,480 --> 00:01:47,280 Speaker 2: you use less of the gas and coal, but you 42 00:01:47,400 --> 00:01:50,000 Speaker 2: need it even more. And that's the crunks we're facing 43 00:01:50,080 --> 00:01:50,520 Speaker 2: right now. 44 00:01:50,640 --> 00:01:53,280 Speaker 1: A methodic stiffing US. I mean they say it's going 45 00:01:53,320 --> 00:01:55,560 Speaker 1: to increase their income on Q three Q four, which 46 00:01:55,640 --> 00:01:57,840 Speaker 1: indicates to me that they've sold it to us at 47 00:01:57,880 --> 00:02:00,680 Speaker 1: a rate that they can't sell it internationally. Yes, they're 48 00:02:00,720 --> 00:02:01,960 Speaker 1: laughing all the way to the bank. 49 00:02:03,040 --> 00:02:05,800 Speaker 2: Well, I mean, I think I imagine the benefiting from it. 50 00:02:06,400 --> 00:02:10,240 Speaker 2: But I think also it's important to realize that we 51 00:02:10,320 --> 00:02:14,080 Speaker 2: absolutely need method X to do what they've done, alongside 52 00:02:14,080 --> 00:02:17,160 Speaker 2: a range of other things. So you've got the aluminium 53 00:02:17,160 --> 00:02:19,840 Speaker 2: smelter at Tea Wye for instance, has substantially reduced its 54 00:02:19,919 --> 00:02:24,400 Speaker 2: production to free up electricity. You've had transpair freeing up 55 00:02:25,320 --> 00:02:27,600 Speaker 2: the reserves we keep in the hydro lakes for times 56 00:02:27,600 --> 00:02:30,320 Speaker 2: of emergency. So when you combine sort of those three 57 00:02:30,320 --> 00:02:34,400 Speaker 2: things across, that will actually make I think a pretty 58 00:02:34,400 --> 00:02:35,760 Speaker 2: good difference over the next few months. 59 00:02:35,800 --> 00:02:38,079 Speaker 1: Good stuf. John appreciate then, so John Harbord, who's the 60 00:02:38,080 --> 00:02:40,640 Speaker 1: major electricity users group. So we don't have enough power, 61 00:02:41,000 --> 00:02:44,160 Speaker 1: everyone's leaving, the tourists aren't arriving. Cool Morning eight. 62 00:02:44,919 --> 00:02:47,799 Speaker 2: For more from the Mic Asking Breakfast, listen live to 63 00:02:47,919 --> 00:02:48,480 Speaker 2: news talks. 64 00:02:48,480 --> 00:02:51,720 Speaker 1: It'd be from six am weekdays, or follow the podcast 65 00:02:51,720 --> 00:02:52,560 Speaker 1: on iHeartRadio.