The Australian Competition and Consumer Commission released its seventh Gas Inquiry report on Thursday morning, finding that a supply shortfall on the east coast market next year is unlikely, but supply remains tight.
“The supply-demand balance in the southern states remains tight, and there is uncertainty about how much gas will actually be used for gas power generation and how much of the gas produced in the south, particularly the Cooper Basin, will flow to Queensland,” said ACCC chair Rod Sims in a statement.
Prices remain high and a challenge for industrial customers, particularly south of Queensland. Some have absorbed costs, but this is not always possible.
“In Queensland, prices offered by producers for gas supply fell below $10/GJ in early 2019 at the same time that the expected LNG netback prices for 2020 fell,” says the ACCC.