The latest interim report of the Australian Competition and Consumer Commission’s (ACCC) inquiry into gas supply arrangements in Australia was released today, with a continued focus on the east coast market.
In the report, the ACCC observed gas price offers for supply in 2021 fell from $8-14/GJ in the second half of 2019 to $6-8/GJ by mid-2020, due in part by the record low oil and LNG spot prices, as well as the COVID-19 pandemic.
ACCC Chair Rod Sims said while the fall in prices was positive, domestic customers were still paying more than their overseas counterparts, and it was crucial new investment decisions were made now to avoid future supply shortfalls.
“The fall in gas prices is very welcome news for major gas users who, like many other Australian businesses, have faced enormous challenges in responding to the COVID-19 pandemic,” he said.
“It is concerning that the risk of a gas supply shortfall in Australia’s southern states continues, despite this having been a looming issue for some time.
“There are new sources of supply and related infrastructure that could be brought online to avoid a potential shortfall.”
Mr Sims said the southern states were facing the greatest risk of shortfall and recommended governments encouraged investment in north-south transportation infrastructure or import terminals on the east coast.
Click here to read the full report.
For more information visit the ACCC website.
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