East Coast Gas Prices Plummet to Five-Year Low Amid Supply Adequacy

The east coast of Australia has seen its gas prices hit a five-year low in 2026, according to a recent report from AEMO. The average domestic gas price reached AU$9.08 per gigajoule (GJ) during the June quarter of 2026, representing a decline of approximately 26.5% compared to the same period in 2025 when prices averaged AU$12.36/GJ.

This price compression is largely due to the combination of structural and cyclical factors, including increased competition among producers, reduced industrial gas demand, and lower seasonal heating demand. The current pricing environment demonstrates that Australia's east coast domestic market can operate independently of global pressures when supply is adequate.

The divergence between domestic and export prices is significant, with the local market price being less than 44% of the international LNG netback benchmark. This has created a commercial tension for producers who must balance contractual obligations to domestic buyers against the higher returns available from export markets.