During 2015 the eastern Australian gas market has experienced significant transition with the development of CSG resources and the associated creation of an east coast LNG export industry. These drivers are changing the dynamics of the market conditions for producers, major industrial gas users and consumers.
Both federal and state governments are taking actions to broach the concerns about these new dynamics impacting market transparency, liquidity and competitiveness. Policy makers have delved deep into the supply/demand situation to assess future reforms to the domestic gas market that will ultimately reduce barriers to domestic gas supply over the coming period to improve market efficiency. What will these reforms mean for the industry for the years ahead?
Although there are plentiful gas reserves in Western Australia to meet both projected domestic and LNG export demand for the foreseeable future, a significant number of gas reserves have been held under retention leases for a long period of time.
A tightening in the domestic market during 2015 put pressure on the government to review the principles of the retention lease policy, to increase investment incentives and encourage new market entrants.
As many long-term domestic gas supply contracts expire during the next few years and replacement contracts need to be secured, there is underlying uncertainty and lack of transparency around whether supply can ramp up quickly enough to meet demand. There is also concern around how the cost of the new gas developments will affect price discovery.
With 2015 being a year of so many uncertainties regarding further reform of gas markets; gas supply competition; changes in the regulatory environment for gas infrastructure and development; market data and transparency – the 4th Annual Australian Domestic Gas Outlook conference will gather the major domestic gas market shakers and shapers to give first-hand information on updates affecting future market development.
Being held once again at the Four Seasons in Sydney from 7-10 March, this event will bring together key industry stakeholders from the length of the supply chain to address and help all in attendance understand what lies ahead for Australia’s domestic gas markets.
The event is an opportunity to hear insights from chief economists, chief executives, and chief market regulators on the issues currently affecting domestic gas supply and demand, including:
- Gas price outlook: questioning if gas demand will increase enough to drive up prices, volatility and seasonal spread
- Economics: dealing with current uncertainties and impacts on the major industrial users
- Project and policy developments: ‘around the grounds’ view of major state project and policy developments in gas production, pipelines, distribution and storage markets
- Impact on grid portfolio: how to implement the necessary incentives to drive efficiencies in gas infrastructure.
Some of the key speakers confirmed for the 4th Annual Australian Domestic Gas Outlook conference include:
- Jeff D. Makholm, Senior Vice President, NERA Consulting, US
- Graeme Bethune, Chief Executive Officer, EnergyQuest
- Paul Adams, Managing Director, Jemena
- Richard Cottee Managing Director, Central Petroleum
- Mark Cully, Chief Economist, Department of Industry, Innovation and Science
- Rod Duke, Vice President Downstream, Santos
- Stuart Jeffries, Director Gas Marketing, ExxonMobil
- Rob Wheals, Group Executive Transmission, APA Group
- Barry Goldstein, Executive Director, Energy and Resources, South Australian Department of State Development
- Clare Savage, Executive Director Policy Energy , Business Council of Australia
- Phaedra Deckart, Head of Wholesale Gas, AGL Energy.