The east coast gas market should see sufficient gas supply for 2023, as the latest report from the Australian Competition and Consumer Commission (ACCC) indicates that previous concerns have been solved.
In August 2022, when the ACCC forecast a shortfall of 56PJ in the east coast gas market in 2023, the Federal Government took action to make sure this supply crisis didn’t eventuate.
The Heads of Agreement, secured in September 2022 with the three east coast LNG Exporters ensures an additional 157PJ of gas is made available to the domestic market before being contracted for export.
These cooperative efforts with the industry have paid off, with the ACCC now sufficiently satisfied that there won’t be a material shortfall in the eastern market for the remainder of 2023, particularly if another 3PJ is contracted to domestic users.
While the ACCC forecasts the domestic market will need an additional 11PJ in the third quarter of 2023, they note there is a surplus of 18PJ available to meet this demand and the Federal Government is confident the commitments made under the Heads of Agreement are more than sufficient to cover this quantity of gas.
This ACCC data is one of the key inputs to the minister’s consideration to not commence the notification period for the newly reformed Australian Domestic Gas Security Mechanism for the fourth quarter of the 2023/23 financial year.
“The Government understands that reliable energy supply and affordable energy prices are top of mind for Australian families and Australian businesses,” Ms King said.
“This is why we also took action with the Energy Price Relief package to take the sting out of energy price rises.
“I continue to work with the resources sector to ensure it delivers the energy and minerals needed for our own security and clean energy transformation, as well as the energy security of our trading partners. “
In the longer term, to improve the way the gas market operates, the Government will implement a mandatory code of conduct for gas companies to ensure access to gas at reasonable terms and prices.
The ACCC report is available here.