Australia's southern states face rising gas prices and potential winter shortages as they shift toward imported liquefied natural gas by 2026, according to the Australian Competition and Consumer Commission.
However, Rob Wheals, CEO of Squadron Energy, which is developing an LNG terminal in Port Kembla, New South Wales, disputes the ACCC's findings.
He claims global LNG price reductions and increased supply will counterbalance costs, driving down winter peak prices.
The ACCC warns that importing LNG will introduce additional expenses, such as shipping, liquefaction, and regasification, likely affecting heating bills and the cost of goods like bricks and glass.
The watchdog forecasts a 16-petajoule gas shortfall in the southern states this winter, with high-demand months requiring storage drawdowns and Queensland gas imports.
The debate over gas pricing intensifies as energy becomes a political flashpoint ahead of federal elections.
The ACCC urges governments to ease barriers to developing new gas fields, clashing with Greens policies against further gas extraction.
It highlights the role of gas in a net-zero transition and suggests coordinated market planning to boost supply and investment.
Manufacturers, particularly in Victoria, express concerns over high gas prices jeopardizing operations and jobs.
The ACCC notes that despite a softening of gas contract prices for 2025, costs remain double 2021 levels.
Federal Climate and Energy Minister Chris Bowen argues government actions have improved supply, though the ACCC says the $12/GJ price cap has had limited impact.