Australia’s gas crisis is a ‘combined problem’

Tony Wood of the Grattan Institute says Australia’s gas crisis is a “combined problem” of not having enough coal-fired power stations online and gas being “very expensive”.

This comes after Energy Secretary Chris Bowen held an emergency meeting with state energy ministers to discuss gas supply shortages and impending rising costs for users.

“There’s a physical constraint, and it’s hard for markets to work against physical limitations, it’s hard for governments to magically work against physical limitations,” Mr Wood told Sky News Business Editor Ross Greenwood.

“We’ve been able to move a lot of gas, but it hasn’t solved the problem, and of course it’s now putting upward pressure on the gas.”

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