Transparency recommendations
The ACCC and GMRG have worked together to identify the information deficiencies in the east coast gas market and the steps that could be taken to improve transparency in the market.
Energy
Investment required for lower priced gas
Gas users’ longer-term concerns about prices in the east coast gas market could be alleviated if there is timely investment in gas development and key infrastructure, according to the Gas Inquiry 2017-20 Interim Report released by the ACCC today.
Suppliers expect to produce sufficient gas in the east coast to meet the expected demand in 2019, but domestic prices remain too high for many gas users.
December 2018 interim report
The ACCC released its fifth interim report as part of its inquiry into Australia’s wholesale gas supply arrangements.
Publication of gas export parity prices to improve transparency
The ACCC has today commenced publication of LNG netback prices on its website.
An LNG netback price is an export parity price that a gas supplier can expect to receive for exporting its gas. It is calculated by taking the delivered price of LNG and subtracting the costs of liquefying natural gas and shipping it to the destination port.
LNG netback price series
The ACCC publishes the LNG netback price series as one of the measures to improve transparency of gas prices in the east coast gas market.
East coast gas market conditions have eased, but more gas required to lower prices
While conditions in the east coast gas market have eased considerably since the extremes reported in 2017, only action by governments and the gas industry to increase domestic gas supply can bring material price reductions into the future, according to the July 2018 Gas Inquiry Interim Report released by the ACCC today.
Based on current projections for the supply-demand balance, there will likely be sufficient gas in 2019 to meet demand.
July 2018 interim report
On 2 August 2018, the ACCC released its fourth interim report as part of its inquiry into Australia’s wholesale gas supply arrangements. The report continues the ACCC's focus on the operation of the East Coast Gas Market, where there are immediate and longer-term concerns.