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Revised AEMO gas forecast highlights energy policy failure

Lock the Gate has said more needs to be done to control domestic gas price hikes following Australian Energy Market Operator’s (AEMO) latest Energy Supply Outlook released today indicating the domestic gas market is finely balanced.

"The latest AEMO report highlights our east coast energy supply hangs in the balance. It makes it clear that domestic gas vulnerabilities in Australia are the direct result of how much gas is being vacuumed offshore through the Gladstone export LNG terminals,” said Naomi Hogan, spokesperson for Lock the Gate Alliance.

"The federal government now needs to work with AEMO to ensure gas market transparency measures are put in place ASAP and that export gas controls are properly applied.

"The government must ensure they can prevent Australian gas being disproportionately exported when it is clear gas exports are putting at risk Australian energy prices and security.  "Importantly, AEMO now acknowledges there is not a gas supply shortage at all, just a need for decent Australian energy policy to put Australian consumers first.

"The report also reveals the importance of ensuring the planned new renewable energy and battery storage infrastructure is deployed without delay,” Ms Hogan said.

The revised forecast comes as submissions close on the exposure draft of the Australian Domestic Gas Security Mechanism (ADGSM) to help manage the export of “third party” gas.

“It is vital that the Domestic Gas Security Mechanism is strengthened and triggered immediately if we are going to rein in the domestic gas price hikes caused by the export gas industry,” Ms Hogan said.

“In our view, the exposure draft on the mechanism still does not go far enough. The Minister should also be able to consider domestic gas prices when making decisions on export controls.

“We’re calling for the mechanism to be strengthened to account for gas prices, and for other measures to be implemented urgently to require robust gas market transparency and to bust the gas cartel for the good of all Australians,” Ms Hogan said.

The AEMO forecast revision can be found here.

ADGSM exposure draft can be found here.

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