ACCC Warns of Record Winter Gas Shortfall for East Coast

The Australian Competition and Consumer Commission (ACCC) has warned of a potential gas supply shortfall on the east coast during the winter months of July to September, predicting a deficit of up to 9 petajoules (PJ) if liquefied natural gas (LNG) exporters utilize all their uncontracted gas for international markets. The situation is particularly severe in the southern states, where the forecast shortfall could reach a historic high of 40 PJ, double that of the previous year, due to declining production from key basins and increased demand for gas-powered electricity generation. Opposition Leader Peter Dutton has proposed a national gas plan to reserve more domestic gas, aiming to lower wholesale prices and secure additional supply. The ACCC emphasizes the need for LNG producers to consider domestic supply needs before committing to exports, as the balance between domestic demands and export commitments remains precarious. With winter approaching, the risk of shortages is heightened by potential unexpected weather events and power plant outages, which could lead to significant implications for consumers and businesses. The ACCC has urged collaboration between the government and LNG producers to ensure sufficient gas availability for the domestic market.