East Coast Gas Prices Plummet to Five-Year Low Amid Global Volatility

The East Coast of Australia has seen its lowest quarterly average gas prices in five years, according to the Australian Energy Market Operator (AEMO). The June quarter saw domestic gas prices averaging AU$9.08 per gigajoule (GJ), down from AU $12.36/GJ during the same period last year.

This significant drop defied elevated international energy market prices, with the domestic price coming in at less than half the international liquefied natural gas (LNG) netback price of AU $20.84/GJ.

Australian Energy Producers CEO Samantha McCulloch attributed this to a well-supplied local market, which is shielding Australian households, businesses, and manufacturers from broader global energy volatility.

The federal government's proposed national gas reservation framework has been met with concerns that forcing a structural oversupply into the market could backfire by discouraging new capital investment. McCulloch warned that this would ultimately harm long-term affordability.