The minister’s decision was partly informed by the Australian Competition and Consumer Commission’s (ACCC) December 2023 interim gas inquiry report.
The data forecasts enough gas across the east coast to meet demand in 2024. However, market conditions will depend on how much liquified natural gas is exported in 2024. Seasonal (winter) shortfalls are expected. This will require gas supplied from Queensland and out of storage.
The ACCC forecast does not include supply commitments gas producers have already made, or can make, to the domestic market under the Competition and Consumer (Gas Market Code) Regulations 2023. Commitments have already been secured to supply more gas to the east coast domestic gas market for 2024 and beyond, with other commitments well advanced.
This means the government is confident:
- Australia’s gas market will have enough supply from April to June 2024
- there is enough pipeline capacity to bring gas supply to southern markets and gas storage levels are satisfactory
- any domestic supply shortages can be addressed without reducing gas exports.