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Gas

Cheap gas prices a thing of the past?

The age of affordable gas prices could be coming to an end in Australia, a new report suggests.

Over the next couple of years, Santos, the biggest gas company in South Australia, said it anticipates wholesale gas prices will more than double over the next couple of years.

As a result, homeowners could be paying around ten per cent more on to their gas suppliers, reports the Advertiser.

Santos chief financial officer Andrew Seaton commented: "We've seen over the last decade that becoming shorter-term contracts.

"We certainly haven't been writing long-term contracts because our belief is that gas prices will go higher."

The report indicated that in Australia, gas is typically cheaper than in other countries such as Japan and South Korea, although this may no longer be the case.

Energy program director at the Grattan Institute Tony Wood recently said that he does not necessarily sign up to the view that as solar power becomes more affordable, the price of gas will increase.

However, he suggested to Climate Spectator along the east coast of Australia it is possible that a rise in domestic gas prices will be seen as a result of the commissioning of LNG projects.

Posted by Callum Fleming