The ACCC has warned that Australia could face gas shortages as early as 2027 if new supply sources are not secured. The latest gas inquiry report by the ACCC indicates a surplus of gas in the short term but predicts a significant supply shortfall by 2027. This forecasted shortfall is expected to occur one year earlier than previously anticipated, with the extended operation of Eraring Power Station providing some relief in 2027.
The change in forecasts is attributed to an increase in forecast gas consumption for power generation and delays in new gas projects, causing a drop in forecast supply. The report highlights the reliance of southern states on gas from Queensland and emphasizes the urgent need for new sources of gas production and supply. The government’s gas strategy aims to improve the supply and affordability of gas in the medium term to support renewable energy transition.
The impact of the government’s intervention in the gas market, including an emergency price cap and a mandatory code of conduct, is still being assessed. The reasonable wholesale gas price is currently set at $12 per gigajoule. The ACCC notes an increase in gas contracting activity since the introduction of exemptions from the Gas Market Code but states that more time is needed to evaluate the code’s impact on the gas market operation.
Overall, the report underscores the need for new gas sources to address forecasted shortages and emphasizes the importance of government action to ensure efficient gas supply to the east coast market. Please rewrite this sentence.
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