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Australian gas market transformations


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Australian gas market transformations

Australia’s gas markets are undergoing unprecedented change.

On the east coast:

  • Gas prices are rising as the market links to international LNG markets
  • Gas supply is tight and domestic contracting challenging, primarily because of uncertainty about the ability of coal seam gas developments fill the gaps left by LNG export commitments.

In the west:

  • Gas prices are expected to rise strongly and, with tight supply, gas users are finding it difficult to secure new supply contracts.

This Deloitte Access Economics report, commissioned by an alliance of six industry associations, provides a comprehensive analysis of the impact of rising gas prices on the Australian economy, and the manufacturing sector in particular.

The changes will bring forth both positive and negative impacts, greater input costs associated with higher prices and greater risk arising from a more difficult gas contracting environment will have adverse consequences for many regions, states and industry sectors.

The report includes six case studies covering the impact on companies in manufacturing sectors as diverse as aluminium, chemicals, food and beverage and paper.

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