The Australian Petroleum Production and Exploration Association (APPEA) has explained in detail the current oil and gas prices as well as the role the industry is set to play in Australia’s economic future.
APPEA Chief Executive, Samantha McCulloch said that the Australian oil and gas industry supports some 80,000 workers and enables almost $500 billion of economic activity annually, in addition to supporting thousands of manufacturing jobs.
McCulloch noted that it’s easy to misrepresent how the gas market and industry works, but the facts are that average domestic prices are well below international prices.
“While a range of prices can be offered to customers in direct negotiations, the average realised domestic prices reported by APPEA members to the Australian Securities Exchange recently for the third quarter sit between $8.50 per gigajoule and $13.10 per gigajoule, well below the international market,” said McCulloch.
“For example, the average realised price for APLNG is A$12.44 per gigajoule for the third quarter 2022. During the same period, the average realised price for LNG sales was A$19.52 per gigajoule.”
McCulloch further explained that around 85 per cent to 90 per cent of the gas market is covered by long-term contracts which were offered in 2021 at price levels of around A$6 per gigajoule to $9 per gigajoule.
“The remainder is covered by smaller, volatile spot price markets which for much of this year have been around 50-70 per cent lower than those paid internationally,” said McCulloch.
“The industry has secured domestic supply and has worked tirelessly to get the gas to where it needs to go and ease pressures.”