Deal to drop the gas price
GAS prices are expected to go down next year after three gas exporters guaranteed a secure supply of gas to the east coast domestic market in a deal with the federal government.
Under the agreement, exporters APLNG, QCLNG and GLNG have agreed to offer uncontracted gas to the domestic market in the event of a shortfall. It means the uncontracted gas will not be offered to the export market unless equivalent volumes have first been offered to the Australian domestic gas market.
Resources Minister Matt Canavan said the agreement confirmed the industry’s commitment to meeting any shortfall of supply in the east coast domestic market.
“As a government, we are working hard to lower energy prices,” Mr Canavan said.
Mr Canavan said 18 months ago there were real concerns around increasing gas prices.
“Getting more supply into the market lowers prices for our manufacturers and households,” he said.
The ACCC found that prices offered for gas supply in 2019 are expected to be between $8 and $11 a gigajoule compared to prices offered in the first half of 2017, when domestic gas offers were above international prices, peaking at $22 a gigajoule in March 2017.