Spot prices spike as second Aussie gas hub opens
The Gladstone LNG plant. Producers in eastern Australia have been accused of prioritising LNG exports. (Santos)
Gas consumers will be hoping the recent launch of a second supply hub in eastern Australia will spur trading in the region, tempering record-breaking wholesale price spikes and boosting short-term flows into a tight domestic market.
Wholesale gas prices in eastern Australia’s short-term trading market have spiked at over A$20/GJ ($15.84/MMBtu) in recent weeks – and up to A$29/GJ in Sydney at one point – as a result of cold winter temperatures and a shortage of supply. This is well above the A$9/GJ equivalent being paid in Japan for imported LNG – some of which is sourced from new plants in Queensland.