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Exxon, BHP to end Australia gas sales, separately market gas in 2019

Published 12/18/2017, 11:55 AM
© Reuters.  Exxon, BHP to end Australia gas sales, separately market gas in 2019
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  • Exxon Mobil (XOM +0.4%) and BHP Billiton (LON:BLT) (BHP +1.6%) say they will end their gas marketing joint venture in Australia and market their gas from the Gippsland Basin separately beginning in 2019, bowing to concerns from the country’s Competition and Consumer Commission about gas supply and soaring prices.
  • The ACCC raised concerns last year about the tight grip on the market held by the Gippsland Basin JV, the biggest producer in Australia’s southern states, and indicated that it could force the companies to sell their gas separately.
  • One of the commission’s main concerns was that big gas buyers such as manufacturing companies were getting only one or two offers at most from gas suppliers for multi-year deals, and the ACCC believes having BHP and XOM market separately will introduce new offers.
  • Now read: Exxon Mobil: What Else Did You Expect?


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