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Queensland gas prices surge on LNG exports


Source: AFR, 6 Jan 2015

The start of liquefied natural gas exports in Queensland has had an immediate upward affect on local wholesale prices for gas, while electricity prices are set to feel the full effects of the demand surge next summer.

BG on Monday shipped its first cargo of LNG from the state after beginning production at the $25 billion Queensland Curtis project in late December.

The inaugural shipment of 145,000 cubic metres of LNG left Gladstone port on Monday, headed for Singapore, a spokeswoman said.

The British gas major is thought to be running the first “train” at almost three-quarters of capacity as it ramps up output. That has more than doubled Queensland’s gas demand.

Spot prices for gas in Brisbane, which were at zero on some days in October ahead of the QCLNG start-up, have leapfrogged prices in Sydney, Melbourne and Adelaide. They were set to top $5 a gigajoule on Monday.

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