The government’s proposed takeover of the east coast gas market has been described as ‘throwing out the rulebook’ by advisory firm EnergyQuest.
In its most recent quarterly report EnergyQuest claims that gas prices on the east coast were coming down before the gas cap was being implemented – attributed in part to the surge in solar generation over summer.
There are early concerns for gas supply security in Western Australia now, with gas prices rising in the state and recent disruptions impacting supply.
Concurrently, the Perth Basin is seeing an increase in drilling, mergers and acquisitions.
Two of the east coast’s major gas resources – the Surat and Bowen basins – yielded increased reserves by more than production. The overall gas replacement ratio increased by 121 per cent 2P gas.
The numbers from 2022 for LNG exports find Australia earning $91 billion in revenue.
The report also included a warning that the carbon price required to meet Australia’s net zero goals is in the realm of $260 per tonne – more than three times the $75 cap on Australian carbon credit units.
For more information, including the full quarterly report, visit EnergyQuest.