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posted on:
February
08
2016

Qld gas users pay the price for $80b export boom

 

Source: The Age, 8 Feb 2016


Queensland's industrial gas users are bearing the heaviest burden from the start of the state's $80 billion LNG export industry, with companies in the north of the state now paying more than double their peers in Melbourne for the fuel.


Large industrial customers in north-west Queensland paid on average $11.97 a gigajoule for gas in 2015, compared to $5.68 in Victoria, a new report for the Department of Industry, Innovation and Science has found.


Industrial gas prices have been steadily rising in all states in recent years, except in Western Australia where prices peaked in 2009 and are softening. But buyers in Victoria benefit from their proximity to conventional gas fields in the Bass Strait and their distance from the three Gladstone LNG projects, which all started production within the last 14 months.


As a result, the biggest price increases over the past two years have been in Queensland, which has displaced WA as the most expensive state for gas for the first time since 2006.