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Australia: More diverse gas supply sources needed says regulator

 |  March 9, 2016

The Australian Competition and Consumer Commission (ACCC) has called for the development of more gas resources to combat high gas prices on the Australian east coast.

Speaking at a conference in Sydney, ACCC chairperson Rod Sims said that there was an urgent need for new and more diverse sources of gas supply into the domestic market. “New sources of supply will assist in ameliorating the supply uncertainty for downstream gas users and put downward pressure on prices in the market.”

Sims noted that there were some encouraging signs of smaller explorers and developers either seeking to develop gas previously deemed too difficult to develop or teaming up with customers to develop new gas sources. However, he added that reforms to increase liquidity in trading markets required more gas and, importantly, increasingly diverse sources of gas from basins located close to markets in the south where much of the domestic demand was.

Full Content: SBS

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