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Australia 18th in wholesale gas prices

A new survey from the International Gas Union (IGU) reports Australia’s average wholesale gas price was US$5.58/MMBTU (AU$8.02) last year.

IGU’s 2020 Whole Price Gas Survey said Australia’s average wholesale gas price in 2019 ranked 18th in a survey of 53 countries, with LNG importing nations Chinese Taipei, South Korea and Japan topping the list at around or more than US$10/MMBTU (AU$14.37).

Although Australia’s numbers were among the lowest in the region, they were still higher than the world’s other major gas producers, including the US, Canada, Russia and Middle Eastern nations.

Australia’s strongest contender for the world’s largest LNG exporter, Qatar, recorded a 2019 wholesale price of less than US$2/MMBTU (AU$2.87).

Australian Petroleum Production and Exploration Association (APPEA) Chief Executive Andrew McConville said Australian gas users had enjoyed competitive wholesale prices, but the high price compared to other gas users reflected the “high cost of doing business in Australia”.

“The widely repeated claim that Australia’s wholesale prices are higher than in the countries importing our LNG has once again shown to be without foundation,” he said.

“Removing unnecessary government restrictions on exploration and development is the most effective way to boost supply, enhance competition and put downward pressure on prices, ensuring Australia retains or improves its global position while enjoying the substantial and on‑going benefits from our LNG exports.”

The countries at the bottom of the list included Turkmenistan and Venezuela at less than US$1/MMBTU (AU$1.44), which IGU said were subject to some form of regulation and often below the cost of production and transportation.

Click here to read the full report.

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