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posted on:
March
07
2017

East coast gas shortages to hit this winter

 

Source: Financial Review 07/03/2017



Eastern Australian manufacturers will be left short of gas this winter unless the new $80 billion Queensland LNG industry diverts gas away from export to sell it to local users, AGL Energy has declared.


The shock advice from one of the country's biggest gas retailers shows that the shortages that some have long feared in east coast supplies are much more imminent than are being assumed by government and some regulators.


It also explains why some industrial customers are getting demands for gas prices around triple last year's levels after they were too slow to reserve some of the limited contract supplies available.


"I don't believe there is adequate supply of gas to the market unless those LNG trains can push gas south rather than export," AGL head of wholesale markets Richard Wrightson told The Australian Financial Review.




"If there's an exceptionally mild winter then we could scrape through, but if it's a cold winter, no. We are actually out of contracted gas, we don't have any left in our portfolio."



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