According to Reuters, Australia’s competition watchdog has forecast that Eastern Australia will have an ample supply of natural gas in 2020, although prices will still be higher than expected.
Thanks to increased supply to its domestic market from LNG exporters, Australian natural gas supply for 2020 is now estimated to be 2025 PJ (1.9 trillion ft3), while demand is predicted to be 1831 PJ.
The competition watchdog began scrutinising Australia’s domestic gas market in 2017, prompted by gas prices more than doubling in response to concerns regarding supply shortfalls. The shortfalls were caused by three LNG export projects exporting gas from the domestic market.
Following the watchdog’s investigation, the Australian government applied pressure to the country’s LNG producers to hold back supply for the domestic market. The proposed alternative was the imposition of export caps.
LNG producers in Australia now reportedly expect to supply 209 PJ to the country’s domestic market in 2020, more than the 202 PJ they expect to export.