Increasing supply to reduce prices
August 4th, 2014
Fairfax Media is reporting today that domestic gas prices are set to soar as gas exports commence from the three large Liquefied Natural Gas (LNG) projects in Queensland later this year.
But there is a solution.
As the article notes, prices in the US have come down as new supply has been brought onstream:
“The surge in gas produced from so-called unconventional sources such as shale, has pushed down prices in the US”.
This video from the team at Energy in Depth tells the story of the impact on domestic gas prices as a result of the US shale gas boom.
Responsible development of Australian’s unconventional gas resources could drive a similar price reduction.
For example, a recent report by ACIL Allen Consulting found that Sydney gas prices could fall as much as 12 percent by 2025 if the coal seam gas industry develops in New South Wales.