The Australian Competition and Consumer Commission forecasts a gas surplus on Australia's east coast until 2026 but warns of potential shortages by 2027, a year earlier than expected.

The ACCC's June report highlighted sufficient gas supply through 2026, contingent on additional gas from storage and Queensland's liquified natural gas suppliers during winter peaks.

The improved outlook is partly due to extending the coal-fired Eraring power station's life, reducing immediate gas demand. However, from 2027, annual shortfalls are anticipated due to regulatory delays and issues with older gas fields.

The ACCC emphasised the need for new gas production sources to address long-term market shortages. The regulator also noted ongoing market volatility and a shift towards short-term contracts, which concern businesses seeking long-term supply certainty.