MORE GAS STARTS TO FLOW TO THE DOMESTIC MARKET
As part of the Coalition Government’s agreement with gas exporters APLNG has announced an additional 41 petajoules (PJs) of gas for the domestic market.
The announcement of more gas from APLNG is a direct result of the agreement the Prime Minister struck with gas producers to deliver a more affordable and reliable energy system.
The additional gas will help cover the forecast shortfall in domestic gas supplies of up to 107PJ in 2018 and 102PJ in 2019 identified by the Australian Energy Market Operator AEMO.
The deal with the gas producers meant the Government did not need to pull the trigger on the Australian Domestic Gas Security Mechanism for 2018, which would have imposed export restrictions.
Since the Coalition Government’s intervention we have seen more gas supplied to the domestic market and the spot price drop from as high as $14-16/GJ earlier this year to around $6-8/GJ today.
More affordable gas is important as gas fired generators are setting the prices of electricity more than they have in the past as coal fired generators exit the system.
This is a positive outcome and will bring welcome relief to Australian households and businesses who have been struggling with tight supply and high prices.
Securing gas for Australians is one of many actions being taken by the Coalition Government, including stopping the networks gaming the system, our agreement with the retailers to get consumers a better deal and the National Energy Guarantee, to deliver a more affordable and reliable energy systems as we transition to a lower emissions future.