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Domestic gas market forecast to ‘run quite tight’ as we export more resources

Long-term electricity supplies are reliant on a number of new gas generators put into the marketplace.

Fertilizer companies, aluminium smelters and many other industries all need a consistent and sufficient amount of gas power.

But Wood Mackenzie consultants forecasts many of those industries will have to close operations due to a lack of gas energy to power their facilities.

Asia Pacific Gas and LNG Director at Wood Mackenzie Nicholas Browne tells Ross Greenwood “the east coast Australian gas market is going to start running quite tight”.

“There is no shortage of natural gas… however a lot of it is now tied up in the up in the coal-steamed gas LNG export facility, so some of that gas is going to have to get redirected into domestic markets to ensure that there’s enough gas available.

“Ultimately then, it’s going to be down to price. Can east coast consumers compete then with the prices which the LNG producers can get by selling that gas to export markets in Asia?”

Click PLAY below to hear the full interview

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