Wood Mackenzie predicts huge gas price increase

Wood Mackenzie has warned gas prices on Australia’s east coast could rise by up to 70 per cent over the next decade.

According to The Australian, the consultancy said gas prices could surge as high as $15.90/GJ by 2030, with southern states forced to rely on imported LNG through periods of the year.

Wood Mackenzie Director, Gas and LNG Research Nicholas Browne said in a report that Queensland LNG exports had destroyed ability for east coast prices to remain cheap.

“The Queensland LNG export projects have shattered the east coast’s ‘cheap gas forever’ mentality,” he said.

“We believe Australia’s domestic gas price is now inextricably linked to the global LNG price.”

With concern over rising gas costs and threats of political intervention on exports growing, Federal Resources Minister Matt Canavan is set to meet with gas industry chiefs today in attempt to secure gas supply for the east coast in 2020.

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