ACCC warns of potential gas shortages for Australia by 2027.
The ACCC has warned that Australia is at risk of facing gas shortages as early as 2027 if new supply sources are not secured soon. According to the ACCC’s latest gas inquiry report, there is expected to be a surplus of gas in the short term, but this balance is projected to shift significantly by 2027.
The ACCC stated, “Forecasts indicate that the east coast gas market may experience gas supply shortfalls as early as 2027 unless new sources of supply are made available.” This predicted shortfall is expected to happen a year earlier than previously anticipated due to factors such as increased gas consumption for power generation and delays in new gas projects.
The report emphasizes the urgent need for the development of new gas sources to address the forecasted shortages. The ACCC also highlighted the importance of government action to ensure efficient gas supply and competition in upstream production, especially in the face of impending gas shortages.
Government’s Gas Strategy
Resources Minister Madeleine King reiterated the government’s commitment to improving gas supply and affordability in the medium term. The future gas strategy aims to support renewable energy while recognizing the ongoing importance of gas in the transition to a net-zero future.
Assessment of Gas Market Code
The ACCC noted that it is too early to fully assess the impact of the government’s intervention in the gas market, including emergency price caps and the mandatory code of conduct. While some positive signs have been observed in contracting activities between producers and buyers, more time is needed to evaluate the effectiveness of these measures on the overall gas market operation.
Overall, the report emphasizes the need for immediate action to secure new gas sources and mitigate the risk of gas shortages in the coming years. It also underscores the importance of ongoing monitoring and evaluation of government interventions to ensure a stable and competitive gas market.
