20 Sep 2023
Media Release: ACCC report confirms gas industry fulfilling domestic supply commitment
Australia’s gas industry is fulfilling its commitment to domestic supply with a surplus forecast in the east coast market through to 2024, the Australian Competition & Consumer Commission (ACCC) has confirmed today.
However, the ACCC warn that “there remains risk that the outlook could worsen, particularly from higher-than-expected gas demand”.
Australian Energy Producers today said the ACCC September 2023 Interim Gas Inquiry Report showed the sector was delivering for Australian households and businesses but that there was a continuing need for governments to enable new gas supply.
Australian Energy Producers Chief Executive Samantha McCulloch said: “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.
“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.”
While the report provides a positive outlook for the next six months, the ACCC did not update their long-term outlook with forecast shortfalls still likely from 2027 unless production is expanded.
Ms McCulloch said: “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.
“New gas supply is urgently needed and can put downward pressure on prices, reduce emissions by replacing coal and deliver substantial economic benefits to Australians.
“Investment is particularly needed in the southern states of NSW and Victoria where huge populations rely on gas.”
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