Deal to drop the gas price

The Sunday Telegraph (Sydney) - - NEWS -

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.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.