News

Domestic gas prices set to rise when LNG plants start up

The first production train and tanks near completion on the QCLNG project on Curtis Island, Gladstone.
The first production train and tanks near completion on the QCLNG project on Curtis Island, Gladstone.

THE price of gas on Australia's east coast could triple when the first of the region's liquefied natural gas export projects begin operations, analysts have warned.

With QCLNG scheduled to begin exports next year, analysts have warned that the project's LNG production rate would outstrip regional domestic demand.

The price of LNG currently sits at $4 a gigajoule, but analysts have forecast domestic prices will rise to the international process price of $12 a gigajoule.

Grattan Institute energy fellow Lucy Carter said the cost of producing gas was rising.

"The real challenge with gas prices is that you can have a scenario where there can be a $12 price," Ms Carter told The Australian.

"But there could also be a scenario where there is a $6 or $7 gas price."

"And both of those would be reasonable. So there is huge uncertainty about where the gas price is going."

Ms Carter said that international LNG prices alone would not dictate domestic prices.

"The wellhead price is going up because a lot of the cheap stuff has been produced and because unconventional gas (coal-seam gas and shale) costs more to get out of the ground," she said.

"Because of those two underlying price drivers (the Queensland LNG export projects and production costs) gas is unlikely to go back to $3 or $4 as a long-term measure."

Topics:  curtis island, gas, gas prices, lng, qclng, resources



"Melbourne-like" cafe opens in Gladstone today

ALL HANDS ON DECK: Grand opening of Fresh Fix Café on Goondoon St.

"It's like Melbourne with their lane ways"

"Don't trust indicators”: Driver trainer's message on roundabouts

Candita Hamblin explains why roudnabouts are so problematic amongst Gladstone drivers.

Indicators can't be trusted on some roundabouts.

Local Partners

Lady Gaga confirms Super Bowl show

Lady Gaga

Lady Gaga to perform in coveted spot

Girls actors give emotional tributes to hit show

Actor Allison Williams

Actors farewell smash hit HBO show Girls after six seasons

Janet Jackson's pregnancy is 'best thing'

Janet Jackson

Janet Jackson can't wait to become a mum

Jay Z signs two-year movie and TV deal

Rapper Jay Z

Rapper Jay Z has signed a television and movie deal

Nowhere to Hyde: Matt Nable is Australia's man in demand

Matt Nable stars as Detective Gary Hyde in the TV series Hyde & Seek.

NABLE returns to the small screen amidst busy film work.

Marvel's Luke Cage S1E7: Manifest review

Mike Colter in a scene from the TV series Marvel's Luke Cage. Supplied by Netflix.

*WARNING: spoilers if you haven't seen Marvel's Luke Cage*

Beach-side real estate starts at $85k on Fraser Coast

HERVEY BAY REAL ESTATE: You can buy this townhouse in Scarness for under $300k.

Live your beach-living dream locally.

$40million hotel, shops development project for Mackay

Mt Pleasant hotel and retirement accommodation, proposed at 194-202 Malcomson St.

$40m development to take Mackay to 'the next level'

'Flex muscles': Gladstone suburb drops $120K

BUYERS are scooping unprecedented deals by “flexing their muscles at the table”

Few bright lights for property after mining downturn

The Gladstone Regional Council wants associated LNG companies like Bechtel to be apart of the EIS housing accommodation strategy from the outset of the projects and not mid-way through.

Tannum Sands continues to write its own property success story

Property 200m from ocean selling for just over $100K

BEACHCOMBER PARK: Work has started on a new $19.2 million development at Toogoom.

The estate's developer is offering huge discounts for early buyers.

UPDATE: Former rodeo champ's sale rained out, now back on

Larkhill local Ken Consiglio is having an auction of most of the things on his property.

'People kept showing up and we had to turn them away'