The great gas wars of 2023 have begun

Forget iron ore, natural gas is the new battleground for Australia’s resource billionaires.

The war in Ukraine, which has caused global energy shortages, is spurring a buying frenzy amongst companies seeking to buy up quality gas assets.

Last week, while most Australians were still on holidays, Chris Ellison’s Mineral Resources (ASX:MIN) snapped up 15% of Warrego Energy (ASX:WGO) pushing the price of Warrego Energy up more than 20% since January 1, 2023. 

Warrego Energy has onshore gas assets in the Perth Basin. 

It’s notably similar to another Perth Basin gas play, Norwest Energy (ASX:NWE), which has shot up 28% since Mineral Resources made a takeover bid on December 15.

So does this mean the Perth Basin is the new hot spot for natural gas?

Or is the climate just right for gas assets, any gas assets, because global demand is outstripping supply?

Mineral Resources isn’t the only player in the fight for Warrego Energy, in mid-December Strike Energy (ASX:STX) offered $0.335 per share all scrip offer for the company.

Iron ore billionaire Gina Rinehart is also in the mix, with Hancock Energy offering $0.36 per share in an all-cash takeover on January 5. 

While it’s not clear who will win this 3-way tussle for the Perth Basin, what is clear is that for shareholders at least, gas is going to be a key theme for 2023.

The table below shows the share price gains for each of the key players since the bidding war began in mid-December.

 NOTE: Hancock Prospecting is privately owned.