“Australia’s East Coast Gas Market Forecasts Surplus, Risks Shortfall in Q3 2025: ACCC Report”

Australia, Finance

Article: Australia’s east coast gas market is predicted to have a surplus between 69 and 110 petajoules in 2025, according to the latest report released by the Australian Competition and Consumer Commission (ACCC).

This surplus is expected if Queensland’s LNG producers export all their uncontracted gas.

However, a risk of shortfall in the third quarter remains, especially due to higher energy demand for winter heating.

If such a shortfall occurs, LNG producers may need to allocate additional gas to the domestic market to ensure adequate supply.

The report indicates that gas must be transported from Queensland to southern jurisdictions during the second and third quarters of 2025 to prevent local shortages.

The forecast highlights the importance of sufficient gas pipeline and storage capacity.

Anna Brakey, ACCC Commissioner, commented on the positive trend of increasing activity in contracting gas between producers and buyers for supply in 2024 and 2025.

However, more time is required to assess the full impact of the Gas Market Code on the operation of the gas market.

The report also emphasized that east coast gas market prices have been falling since their peak in mid-2022, with these prices now closer to those seen in early 2022.