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.
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.