The Australian Competition and Consumer Commission has warned there is “a finely balanced” gas supply outlook for 2022, and a possible 2 petajoule shortage on the east coast market.
The scenario is included in its Gas inquiry July 2021 interim report, released on Tuesday, was driven by a 6 petajoule shortfall in southern states, and was “dependent upon demand from gas powered generators decreasing to record lows, and a material volume of gas from currently undeveloped reserves being supplied.”
The report’s findings highlighted the need for producers to comply with a Heads of Agreement with the federal government, signed in January, and them needing to “lift their game” in providing relevant material to the ACCC.
Under this HoA, exporters must offer uncontracted gas domestically “on internationally competitive terms before it is exported” and produce information demonstrating compliance.
It also found east coast prices had eased since spikes in July, though “many users” were finding it difficult to get offers for supply beyond 2022. Where a supply can be found, “prices are often at $9-10/[gigajoule].”
“We are also concerned that there have been significantly fewer offers for gas supply being made in the domestic market recently,” said ACCC Chair Rod Sims.
Picture: Joe Castro/AAP
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