The ACCC’s September 2023 Interim Gas Inquiry Report has confirmed the Australian gas industry is meeting its commitment to domestic supply with a surplus projected in the east coast market through 2024.
However, the ACCC warns that the outlook may worsen due to increased gas demand.
According to the Australian Energy Producers, the ACCC report demonstrated that the industry was delivering for Australian consumers and businesses but that governments must continue facilitating new gas supply.
“The ACCC has confirmed surpluses in the east coast gas market through to 2024, highlighting the gas industry’s commitment to ensure domestic supply to Australian households and businesses is being delivered,” Australian Energy Producers Chief Executive Samantha McCulloch said.
“Natural gas plays a critical role in the economy. It is keeping the lights on and powering major industries such as manufacturing where gas supplies around 40 per cent of the energy used,” McCulloch stated.
While the report presents a positive outlook for the next six months, the ACCC did not change their long-term prediction, with anticipated shortfalls remaining likely until 2027 unless production is expanded.
“The ACCC is clearly still aware of the risks to the market of unexpected surges in gas demand if coal or renewable generation is unavailable as well as the need for new gas supply to reduce the risks of shortfalls in coming years,” McCulloch said.
She stated that new gas supply is crucial as it has the potential to lower prices, reduce emissions by replacing coal, and provide significant economic advantages to Australians.
“Investment is particularly needed in the southern states of NSW and Victoria where huge populations rely on gas,” she added.
