Page 8 - GLNG Week 31 2022

GLNG AUSTRAL ASIA GLNG

Australia faces gas shortfall, high prices in

2023, warns consumer agency

POLICY AUSTRALIA will next year face a gas shortage restrict LNG exports by Australia might cre-
and a steep increase in prices, prompting a forced ate further tightness in a global market that is
reduction in exports if the government fails to already worried about securing supplies in view
take steps to ensure adequate supplies, a govern- of gas shortages brought about by the war in
ment watchdog, the Australian Competition and Ukraine.
Consumer Commission (ACCC), has warned in Australian Resources Minister Madeleine
a new report. King said she would discuss the country’s out-
Australia, which vies with Qatar and the US as look with Australia’s producers and foreign cus-
one of the world’s largest LNG exporters, needs tomers before making a decision in October.
new sources of supplies to make up for declining A curb in exports would most likely have an
reservoirs from offshore fields that have fed gas impact on the three export facilities located in
to the East Coast, where some 90% of Australi- Queensland: Gladstone LNG facility (owned by
ans live. Three gas export facilities are located in Santos, Petronas, TotalEnergies and Kogas); Aus-
the eastern state of Queensland, and a large LNG tralia Pacific LNG (owned by Origin Energy);
export industry is located in the north-west. and Queensland Curtis LNG (owned by Shell).
The population centres along Australia’s The three companies exported some 13.24mn
south-eastern and southern coasts are expected tonnes of LNG during the first half of 2022. It is
to see a shortfall of 10% in the coming year. This expected that these plants will be processing and
is due to a reduction in the use of coal and the producing an excess of natural gas over what is
slow development of renewable alternatives. needed for export in the coming year. But if gas
Australia media have reported that domestic from these plants is to diverted to domestic mar-
gas prices have jumped by 400% and would have kets, it will be priced competitively.
gone higher if the Australian Energy Market The ACCC has recommended that the gov-
Operator, the regulator, had not imposed price ernment apply the Australian Domestic Gas
caps. Supply Mechanism, a measure drawn up in 2017
The Canberra government said it would designed to enable the government to order the
examine the situation and make a decision to diversion of LNG exports in order to keep the
redirect domestic gas if necessary. A move to domestic market supplied.™

P8 www. NEWSBASE .com Week 31 05•August•2022