As reported by The Australian Financial Review, Matthew Stevens:
The Australian gas market is fulfilling the competition regulator’s “worst fears” as both producers and customers struggle to cope with the new realities forced by the $70 billion investment in the transformation of the east coast industry from marginal domestic supplier to globally significant energy exporter.
“The outlook for gas supply is now even worse than it was a year ago; indeed, our worst fears are being realised,” the Australian Competition and Consumer Commission chairman, Rod Sims, will tell a gas industry conference in Sydney on Tuesday morning.
Sims, who arguably commands the broadest and most complete data base on the state of national gas markets following last year’s profoundly important ACCC study into east coast gas markets, will arrive at the 5th Annual Australian Domestic Gas Outlook conference with a set of clarifying and very timely observations.
The ACCC chairman will remind everyone that Australia has gas resources enough to fully sate domestic and export demands, but that producers have been unable to respond as they normally would to dramatically higher prices because of infrastructure and resource access constraints.