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Josh Frydenberg - Liberal for Kooyong
  
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Turnbull Government delivers more gas, more jobs

Published: Wednesday, 13 December 2017

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Australia is no longer facing a shortfall of gas supply in 2018 on expected demand, with Turnbull Government action to keep more gas for the domestic market beginning to reap dividends.

Since we moved to shore up our gas supply for Australian users, significant gas supply has been diverted to the domestic market, and we are now on target to have a 20 petajoule (PJ) surplus of gas in the coming year, based on expected demand.

Just three months ago, the ACCC estimated Australia would face a shortfall of between 55 PJ, on expected demand.

More gas in the domestic market means more contracts for businesses, more offers to customers, and lower prices.

And that is exactly what we are now seeing.

Today’s updated report from the ACCC finds that Queensland LNG producers have contracted 42 PJ of gas to Australian buyers in the past few months, and have reduced their planned exports by 29PJ.

In just a few months, prices for large gas users have fallen from a peak of $16 a gigajoule (GJ) to as low as $8/GJ, allowing more users to secure affordable supply agreements.

Prices for small users have fallen from around $18-$19/GJ in mid-2017 to less than $11/GJ.

Daily spot prices between the 2nd and 4th quarter of this year have fallen 11-12 per cent in Queensland and 34 per cent in Sydney, Adelaide and Melbourne.

In April, we directed our consumer watchdog the ACCC to investigate and report on Australia’s gas market; an inquiry that would run for three years and allow the ACCC to shine a light on the industry using its compulsory information gathering powers.

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