The ACCC has undertaken a review of the LNG netback price series as part of the ongoing inquiry into the east coast gas market.
In 2020, the Australian Government announced that the ACCC will undertake a review of the LNG netback price series. The announcement was made as part of a broader range of government-announced measures seeking to increase gas supply, increase efficiencies in transporting gas, and improve the negotiating power of gas consumers in the east coast gas market.
A public review of the LNG netback price series in 2021 reflected:
- significant changes in LNG markets due to growing supply and increased trade in LNG spot markets
- findings from the ACCC review of pricing strategy documents obtained from east coast gas suppliers outlined in the January 2021 interim report.
The ACCC published its final decision paper in September 2021.
We are currently in the process of implementing the final decision to publish longer-term LNG netback prices.
Issues paper
On 18 March 2021, the ACCC released an issues paper as part of its review of the LNG netback price series.
Submissions to the issues paper were due on 12 April 2021.
| Document title | Published date |
|---|---|
| LNG netback price series review - Issues paper ( PDF 763.11 KB ) | 18 March 2021 |
Submissions to the issues paper
Draft decision paper
On 1 July 2021, the ACCC released its draft decision paper on the LNG netback price series review.
The ACCC announced that it was seeking feedback on the draft decision paper and the Wood Mackenzie preliminary report. Information on how to provide a submission is contained in the draft decision paper.
Submissions to the draft decision paper were due on 30 July 2021.
| Document title | Published date |
|---|---|
| LNG netback price series review - Draft decision paper ( PDF 1.74 MB ) | 1 July 2021 |
| Wood Mackenzie preliminary report to the ACCC - June 2021 ( PDF 1.49 MB ) | 1 July 2021 |
Submissions to the draft decision paper
Final decision paper
On 30 September 2021, the ACCC announced that it had finalised the LNG netback price series review. The final decision paper and Wood Mackenzie final report have been published.
The ACCC will consult with stakeholders to implement its final decision.
| Document title | Published date |
|---|---|
| LNG netback review - Final decision paper ( PDF 974.93 KB ) | 30 September 2021 |
| Wood Mackenzie final report to the ACCC - September 2021 ( PDF 1.49 MB ) | 30 September 2021 |
LNG price estimates methodology discussion paper
The ACCC has decided to publish longer-term forward LNG netback prices, as outlined in the LNG netback review final decision paper.
The ACCC has engaged LNG consultancy GaffneyCline to provide estimates of medium-term LNG prices, expressed as a percentage (or slope) of oil prices, as an input into calculating longer‑term forward LNG netback prices.
On 6 May 2022, the ACCC released a methodology paper prepared by GaffneyCline outlining their intended methodology for estimating medium‑term LNG slopes.
| Document title | Published date |
|---|---|
| GaffneyCline methodology discussion paper - LNG price estimates ( PDF 1.19 MB ) | 6 May 2022 |
Submissions to the methodology paper
Submissions to the methodology paper for estimating medium-term LNG slopes.
| Document title | Published date |
|---|---|
| APLNG Submission to LNG price estimates methodology paper ( PDF 385.19 KB ) | 10 June 2022 |
| ConocoPhillips Australia Submission to LNG price estimates methodology paper ( PDF 1.6 MB ) | 10 June 2022 |
| EUAA Submission to LNG price estimates methodology paper ( PDF 258.02 KB ) | 10 June 2022 |
| Origin Submission to LNG price estimates methodology paper ( PDF 233.42 KB ) | 10 June 2022 |
| Shell Submission to LNG price estimates methodology paper ( PDF 123.98 KB ) | 10 June 2022 |
LNG freight rate estimates methodology discussion paper
The ACCC has decided to publish longer-term forward LNG netback prices, as outlined in the LNG netback review final decision paper.
The ACCC has engaged FTI Consulting to provide estimates of forward LNG freight rates out to 5 years, for each year, as an input into calculating longer‑term forward LNG netback prices.
On 30 June 2022, the ACCC released a methodology paper prepared by FTI Consulting outlining their intended methodology for estimating forward LNG freight rates.
| Document title | Published date |
|---|---|
| FTI Consulting methodology discussion paper - LNG freight rate estimates ( PDF 802.21 KB ) | 30 June 2022 |
Submissions to the methodology paper
Submissions to the methodology paper for estimating forward LNG freight rates.
| Document title | Published date |
|---|---|
| Shell Submission to LNG freight rate estimate methodology paper ( PDF 122.07 KB ) | 9 August 2022 |