Changes expected in Australian gas market
The price of wholesale gas in Australia is expected to soar in the short term due to the impact of higher production costs and the commencement of international exportation from Gladstone.
This is according to the Bureau of Resources and Energy Economics (BREE), which has forecasted significant changes in the Australian gas market, particularly in Eastern Australia, as liquid natural gas becomes the fuel of choice for many developing economies internationally.
Australia's gas export market is expected to see a massive increase in demand in the coming years, from around 20 million tonnes at the time of writing to over 63 million tonnes in 2016-17, the BREE writes (July 11).
While this has created fears of a gas shortage in Australia, the BREE has asserted that gas prices should level off as investment increases.
"Higher gas prices in Eastern Australia should support investment in gas supply and, ultimately result in an increase in gas production, which in turn would put downward pressure on gas prices," said BREE executive director and chief economist Quentin Grafton.
With such a volatile situation ahead, now is a good time to ensure you are with the right gas supplier for your needs. A gas comparison check can provide you with a summary of the options available and help determine the best course of action.
Posted by Callum Fleming