Australia faces ‘alarming’ gas crisis – August 2022
The ACCC has warned businesses could be forced to close and households left without enough gas next year unless the big three exporters (Australia Pacific LNG, Gladstone LNG and Queensland Curtise LNG project) keep some of their uncontracted liquefied natural gas for the domestic market. In the gas inquiry 2017-2025 interim report released, the ACCC stated that the east coast gas market is facing a gas shortfall of 56 petajoules in 2023, around 10% of annual domestic demand and represents a substantial risk to Australia’s energy security.
Treasurer, Jim Chalmers, said conditions were ‘alarming’ and the government would ‘shortly’ respond to the ACCC’s recommendations. A shortfall of this magnitude would place upward pressure on prices and result in some manufacturers closing their business. The Australia Energy Market Operator reported that wholesale gas and electricity prices tripled in the June quarter from the previous quarter, in part, pushed up by the Russia’s invasion of Ukraine and subsequent sanctions.
The largest 3 big LNG exporters have already told the ACCC they expect to ship overseas ‘the vast majority’ of the gas they produce and is in excess of long-term contracts.