ACCC forecasts gas surplus, price drop
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The news: Australia is set to enjoy a gas surplus and lower prices, despite expectations of a shortfall, according to a new report from the Australian Competition and Consumer Commission (ACCC).
The context: The ACCC will release an interim report as part of its 2017-2030 gas inquiry on Friday, forecasting an excess of gas between 77 and 112 petajoules to be supplied to the east coast market this year, depending on LNG producers’ uncontracted gas exports.
Due to greater supply and lower international prices, domestic prices for gas extracted last year will decrease if sold in 2025.
During the first half of 2024, producer offers averaged $14.77 per gigajoule, a 1.8% decrease from the second half of 2023, while retailer offers fell 13.4% to $15.43 per gigajoule.
The report found that the Albanese government’s gas code, implemented mid-last year, did not have a direct impact on price reductions. But the government argues it has had an indirect impact by boosting supply.
What they said: “Australians are under the pump and that's why we’ve taken decisive action to take the sting out of energy and gas prices — policies the Coalition voted against … [Peter Dutton] push up power prices, push down wages, and come after Medicare again,” Chalmers said in a statement.
The source: Albanese government press release
