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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.”
News by Matthew Killoran
Premium Content  A major investment in Queensland gas fields, including the Bowen and Galilee basins, is needed to head off a devastating national shortage within the next 10 years, a new report has found. The Federal Budget next week will include cash to fast-track the Wallumbilla national gas hub, proposed for western Queensland, while more details around plans to open up the Bowen Basin are expected soon, in response to the National Gas Infrastructure Plan s interim report to be released today. Queensland will be key to keeping production costs down, vital for manufacturing and keeping prices down.
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Australia pays more for its own gas than it charges customers overseas
The Australian Workers’ Union says proposed changes to offshore petroleum and gas storage legislation highlight the fact that the nation’s vast gas supplies are now largely foreign-owned.
The AWU says the Australian Competition and Consumer Commission has also effectively approved cartel conduct by some of the world’s largest gas companies, resulting in our gas going overseas while Australian consumers miss out and prices rise.
“Australians find themselves paying more for our own gas than we charge our customers overseas. It’s crazy!” AWU National Secretary Dan Walton says.