Australia’s east coast gas producers have reaffirmed the industry’s commitment to ensuring a secure and sustainable supply of natural gas for local customers.
The Australian Petroleum Production & Exploration Association welcomed the constructive discussions today between Federal Resources Minister Matt Canavan, Energy Minister Angus Taylor and leading gas producers.
APPEA Chief Executive Dr Malcolm Roberts said initiatives by the industry had boosted domestic gas supply and put downward pressure on wholesale gas prices.
“A co-operative approach over the past year has been successful for government, industry and customers,” Dr Roberts said.
“The export controls introduced last year were not needed to ensure supply in 2018 and will not be needed in 2019.
“In June this year, the Australian Energy Market Operator forecasted that it does not expect supply gaps until 2030. The Australian Competition and Consumer Commission made a similar finding in its latest gas market report.
“APPEA members are committed to supplying local customers at competitive prices. The east coast LNG projects are offering all their uncontracted gas to domestic buyers first.”
The three LNG projects in Queensland have contracted to sell 305 petajoules (PJ) of natural gas to domestic customers in 2018 – about half of east coast demand – and are likely to do the same in 2019. Companies operating from offshore Victoria, South Australia and other Queensland gas projects supply the rest of demand.
“Over the last year, we have seen more supply and lower prices with customers typically receiving multiple offers. But the fact remains we need new supply, especially in southern states,” Dr Roberts said.