Gas inquiry 2017-25

LNG netback price series16 January 2023

The ACCC publishes the LNG netback price series to improve transparency of gas prices in the east coast gas market. 

An LNG netback price is a measure of an export parity price that a gas supplier can expect to receive for exporting its gas. It is calculated by taking the price that could be received for LNG and subtracting or ‘netting back’ the costs incurred by the supplier to convert the gas to LNG and ship it to the destination port.

LNG netback prices based on Asian LNG spot prices and oil-linked LNG contract prices currently play an important role in influencing gas prices in the east coast gas market.

An LNG netback price is not the sole factor that influences domestic prices in the east coast gas market. Individual prices paid by gas users can also reflect other factors that may be relevant to their circumstances, including the terms and conditions of their gas supply and any applicable transportation or retailer charges.

The LNG netback price series comprises:

  • historical LNG netback prices at the Wallumbilla Gas Supply Hub, dating back to January 2016, based on a measure of historical Asian LNG spot prices
  • forward short-term LNG netback prices at Wallumbilla, over a 2-year period, based on market expectations of future Asian LNG spot prices
  • forward medium-term LNG netback prices at Wallumbilla, over a 5-year period, based on estimates of oil-linked prices under medium-term LNG contracts for delivery to Asia.

Historical and forward medium-term LNG netback prices will be updated on this page once a month, and forward short-term LNG netback prices will be updated twice a month.

The prices shown are for information only and do not represent the ACCC:

  • setting a level of gas prices in the east coast gas market or any other market in Australia
  • forecasting international or domestic gas prices
  • forecasting any of the inputs used in the calculation of the LNG netback prices, or
  • providing an endorsement of the price reporting agencies or the specific methods adopted by those agencies.

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