More transparency on gas pricing - report finds
The Australian Competition and Consumer Commission (ACCC) announced that the ACCC Gas Inquiry 2017-20 Interim Report - April 2018 has been released.
According to the ACCC, the interim report confirmed:
- while conditions in the east coast gas market have improved since September 2017, the market is still not functioning effectively.
- prices offered to large commercial and industrial (C&I) gas users towards the end of 2017 were well below the peak of over $20/GJ in early 2017. After falling to a range of $8 to 12/GJ between June and November 2017, price offers made between November and January 2018 narrowed to $8 to 10/GJ for gas commodity.
- additional large C&I users contracted for 2018 gas supply, and some have begun to secure gas supply at these prices for 2019 and beyond.
- despite improved prices, the gas market continues to suffer from a lack of transparency across the supply chain.
To promote improved gas price transparency, the ACCC will begin publishing LNG netback prices on its website to provide gas users with better information about export parity prices.
The ACCC's next interim report is scheduled to be provided to the Treasurer in late July 2018. It will report on the gas supply and demand outlook and the recent experiences of C&I users in securing gas supply, as well as continuing to update on gas prices offered and agreed in the market.Please click for full statement and interim report.