ACCC: ScoMo Gas Unplan to deliver supply shortage, price spike

Here’s the ACCC take on the Morrison Gas Unplan:

Gas prices fell significantly during the past year, driven in part by the COVID-19 pandemic. While lower gas prices are providing some relief to manufacturers and other gas users on Australia’s east coast, prices were still higher than export parity, the ACCC’s latest gas report reveals.

The report, released today, highlights that these lower prices may not last, and that the risk of a supply shortfall remains. While east coast gas supply is expected to meet demand during 2021, a shortfall of as much as 30 PJ may arise by 2024 in the southern states, while the broader east coast gas market faces the risk of a shortfall in 2026.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.