Josh headshot
Josh Frydenberg - Liberal for Kooyong
HomeAbout JoshAbout KooyongAbout The Liberal PartyFor ConstituentsGet InvolvedKey LinksContact Josh
 Media Releases
Turnbull Government delivers more gas, more jobs

Published: Wednesday, 13 December 2017

Download Text 

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.

 Back to Media Releases

Electorate Office:
695 Burke Road,
Camberwell VIC 3124 Australia
Phone: 03 9882 3677
Fax: 03 9882 3773
Email Josh
Ministerial Office:
Parliament House Office
MG:64, Parliament House
Canberra ACT 2600
Phone: 02 6277 7920
Email Josh