Australian wholesale gas prices below Asian average

Australia’s average gas prices are amongst the lowest in Asia, according to the latest international survey of wholesale gas prices.

The 2019 International Gas Union’s Wholesale Gas Price Survey shows the average wholesale gas price in Australia last year ($US4.54/MMBTU[1]) was about 40 per cent less than the average wholesale price for the Asia‑Pacific region. The Australian price was also around one-third less than the average wholesale price in Asia.

Australia’s leading trade partners Japan, South Korea and China all paid average wholesale gas prices over $US8 and in some cases approaching $US12/MMBTU. Australia also enjoyed lower wholesale gas prices than its two regional LNG export competitors, Malaysia and Indonesia.

Globally, Australia’s average wholesale price ranked 27^th in a survey of 54 nations (see chart below).

APPEA Chief Executive Andrew McConville said: “While prices for new contracts on the east coast are higher than previously, the evidence shows the widely repeated claim that Australian prices are higher than prices in the countries importing our liquefied natural gas (LNG) is wrong.”

“While the Australian gas market is relatively tight and prices for new contracts are higher than they have been historically, it remains the case that across the economy that Australian gas consumers are not paying prices above those paid on average in Japan or other LNG importing nations.

“In fact, quite the opposite is true. Australia’s wholesale gas prices remain in the ‘middle of the pack’, a position we have held for many years.”