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ACCC Netback Pricing Draft Report
The voice of the oil and gas industry today said the Australian Competition and Consumer Commission’s (ACCC) report on netback pricing confirmed the current mechanism appropriately reflects the Australian market.
APPEA Chief Executive Andrew McConville said, as the ACCC has previously stated, the netback price was an indicator and not an actual price in the market.
“The current mechanism accurately reflects the massive investment and commercial risk taken by producers to develop more gas resources, which in turn has underpinned ongoing supply to domestic customers,” Mr McConville said.
“The review found, consistent with APPEA’s advice, that for LNG producers on the east coast, exporting to Asia remains their main market, meaning Asian LNG prices are the most relevant benchmark in calculating LNG netback prices for the east coast gas market.”