“And instead, they bought LNG from all around the world, which cost them money, but they were able to do so because they were more than able to outbid large parts of Asia for the LNG gas.”
I think people are concerned that, in this analogy, we will end up being Asia this time. (“We” being New Zealand in my case, but probably applies to Australia as well.)
It is indeed the more extreme and less likely contingencies for which stockpiling makes sense. I don't think I have ever heard an argument for it based on price smoothing. This was me in The Australian in 2019 arguing for the onshoring of liquid fuel reserves https://www.theaustralian.com.au/business/economics/australia-accused-of-taking-cheap-way-out-on-fuel-reserve-strategy/news-story/5e9d9af06fe7ae91cfad75fa37f03438
I don't think it's explicitly made, but implicitly. Why else would it be raised as an issue in the current circumstances?
People are worried things could move beyond rationing based on price.
“And instead, they bought LNG from all around the world, which cost them money, but they were able to do so because they were more than able to outbid large parts of Asia for the LNG gas.”
I think people are concerned that, in this analogy, we will end up being Asia this time. (“We” being New Zealand in my case, but probably applies to Australia as well.)
This is good analysis. I feel people are primed by the events of recent years (eggs, toilet paper, etc) to expect shortages.
In this case however the rationing will be done by the market.
Another clear insightful analysis from Zac Gross