The highest wholesale prices in 2016 were found in largely LNG-dependent countries, APPEA director Matthew Doman said commenting on the IGU’s Wholesale Gas Price Survey 2017.
Australian average wholesale gas prices remained lower in comparison to the average in the Asia‑Pacific region, according to the International Gas Union’s report.
The report shows that the average wholesale gas price in Australia last year of around $4.29/mmBtu was around one-third less than the average price for the Asia‑Pacific region.
By comparison, Australia’s leading trade partners Japan, South Korea and China all paid average wholesale gas prices between $7 and well over $8/mmBtu.
Australia also saw lower wholesale gas prices than its two regional LNG export competitors, Malaysia and Indonesia APPEA said in its comment on the report.
Doman noted that “contrary to some claims, across the economy Australian gas consumers are not paying prices above those paid on average in Japan or other LNG importing nations.”
“Removing unnecessary government restrictions on exploration and development is the most effective way to boost supply, enhance competition and put downward pressure on prices, ensuring Australia retains or improves its global position,” Doman concluded.