Under the agreement, LNG exporters agreed to offer non-contract gas on reasonable terms on the domestic market in the event of a deficit. This non-contract gas will only be offered to the international market if equivalent quantities of gas have already been offered to the Australian domestic gas market on competitive market terms. The national Liberal coalition government is keeping the pressure on energy prices on families and businesses with a new deal as part of the government`s JobMaker plan. Australia`s Minister of Resources and Northern Affairs, Matt Canavan, said the agreement with APLNG, QCLNG and GLNG confirms the industry`s commitment to address supply bottlenecks in the East Coast domestic market. “The individual prices offered to consumers of domestic gas will continue to be internationally competitive, taking into account the producer`s delivery costs and factors that may be relevant to the individual situation of consumers, including the terms of their gas supply contract and any applicable transport or retailer charges,” McConville said. “The gas industry is boosting important local exports and is also a significant employer in the Gladstone area, and the agreement will lay the groundwork for future growth that will support the covid recovery,” O`Dowd said. “As part of our JobMaker plan, we are delivering more Australian gas where it is needed at an internationally competitive price, particularly to producers employing more than 850,000 Australians, many of whom depend on gas,” the Prime Minister said. At the end of December 2020, representatives of three LNG projects on the East Coast signed an expanded agreement with the Commonwealth. The report shows that contract gas prices in the East Coast market remained at the lower levels seen in 2020 until February 2021. However, the deteriorating supply situation means that these prices may not last. This forecast depends on the demand for gas generators falling to record levels and a volume of material-rich gas supplied from currently untapped reserves.
“Gas is crucial to our economic recovery and this agreement ensures that Australian businesses and families have the gas supply they need at the cheapest price,” said the Prime Minister. “It complements Australia`s domestic gas safety mechanism, which also refers to the Australian Competition and Consumer Commission`s (ACCC) net LNG price series.” The internal market in the East, including the southern states, has benefited from these developments, with the resulting gas giving us the advantage of export earnings as well as domestic gas supply. “The coalition government remains committed to lowering energy prices and ensuring that all Australians benefit from increased supply and reliability,” said Minister Pitt. A supply shortage in Australia`s gas market on the east coast is becoming increasingly likely, particularly in the southern states, as shown in the ACCC`s latest gas report. The coalition government is also continuing its commitments to develop new gas supplies through the Strategic Basin Plans, with the Beetaloo Basin Plan completed and gas development work in the North Bowen and Galilee Basins progressing. “This includes establishing an efficient gas hub at our strategically located and best-connected gas trading centre in Wallumbilla, Queensland to create an open, transparent and liquid gas trading market.” At Pluto, feasibility studies have been carried out for small and medium-sized LNG trains (0.7 to 1.5 MMt/y), which will provide options for . More generally, the industry has also recommitted to meeting the peak gas supply guarantee of electricity demand, which ensures that there is enough gas available to keep the lights on during periods of high demand for gas production. The review of accC`s net LNG price series is underway and will be completed by September 2021 after two rounds of public consultations. “The Beetaloo has the potential to reflect the shale gas revolution in the United States – bringing jobs and investment to the North while providing a secure and affordable gas supply to the industry,” said Secretary Pitt. “The Australian Government will continue to work with relevant regulators and energy market bodies, including AEMO, ACCC, the Australian Energy Market Commission and the Australian Energy Regulator, to build on reforms that improve the functioning of the internal gas market on the East Coast.” We are also concerned that there have been far fewer gas supply offers on the internal market recently. “The firm measures taken by this government since then, including the establishment of a gas export control framework and the heads of agreement with LNG exporters, have helped to reduce domestic spot gas prices by 25% and gas supply prices by more than half,” he said.
The ACCC is required to submit interim reports at least every six months and, where appropriate, provide information to the market, with a final report available by December 30, 2025. The report published today shows a finely balanced supply outlook for 2022. A deficit of 2 PJ could occur next year across the entire East Coast gas market, driven by a deficit of up to 6 PJ in the southern states if LNG producers export all of their surplus gas. “We are working to find the right balance between gas that is affordable for manufacturers and a price that encourages the development of new gas resources. On 15 September 2020, the Australian government announced a series of policy measures to further develop gas supply, create an efficient pipeline and transport market and strengthen gas customers. The ACCC noted that price quotes for the 2022 offer tend to increase from 6-11/FY in early 2020 to $6-8 in the second half of 2020. Since the government first acted in mid-2017 to secure gas supply to the domestic market through the introduction of Australia`s domestic gas safety mechanism and the first heads of agreement, the spot price of gas has risen from $12.50 to $10.50 per gigajoule and is now between $7 and $5 per gigajoule. Australia`s Minister for Resources, Water and Northern Australia, Keith Pitt, said the new chiefs were prioritising Australian families and businesses by ensuring Australia did not experience supply shortages at the expense of exports. Ken O`Dowd, a member of Flynn, said the deal underscores the key role gas plays in our local industries. Domestic gas supply opportunities in Queensland are being developed following the signing of a . The ACCC has found on eight consecutive occasions that there is no deficit in the domestic market.
The agreement, signed by Prime Minister Scott Morrison and LNG exporters Australia Pacific LNG, Queensland Curtis LNG and Gladstone LNG, will help ensure the supply of gas to the East Coast market at competitive prices until at least 2023. “Domestic spot gas prices surged in July, but the increase was caused by a number of circumstances that won`t necessarily affect long-term contract bids. Fortunately, we saw some slowdown in these high spot prices in August,” Sims said. The review of the Netback price series is based on the results of a detailed review of gas suppliers` pricing strategies. The gas report released today includes the ACCC`s findings, including that oil prices appear to have a significant impact on domestic prices and that competition is a limited constraint on prices. “It`s about making Australian gas available to all Australians while supporting economic growth and supporting key regional jobs in our growing LNG sector. Senator Matthew Canavan, Australia`s Minister of Resources and Northern Affairs, Mr McConville, said the industry appreciates the government`s reasonable approach to working with industry to complete HoA by January 1, 2023. .