The Australian market remains oversupplied with a shortage of domestic gas, with a price of about $1.30 per million British thermal units (Btu) compared to about $2.00 per million Btu in China and about $3.50 per million in the US, according to a report published in Energy Economics, a journal published by the Australian National University.
The report, titled Gas Shortages: Why Does the Australian Market Still Have an Oversupply?, shows that Australia is still in the midst of a “gas glut” and that the shortfall has left many of the country’s gas stations and refineries unable to make enough money to stay afloat.
The shortage, the report said, was exacerbated by “significant price rises” across the supply chain.
“The cost of gas to the Australian gas industry is now so high that the sector has been forced to reduce the amount of gas it can sell to the gas markets,” the report found.
“This has been exacerbated by significant price rises over the last few years.”
Gas stations in NSW and Victoria are now making less money than they did five years ago, and gas station owners in the southern state of Queensland are facing a potential loss of $600 million in revenue from gas taxes.
The gap between what the gas companies are making from selling gas and what they’re making from paying taxes and fees to the government has led to a sharp increase in prices.
“Despite the price increase, gas prices have remained relatively stable, with the price of gas in Australia staying roughly the same from July to September 2017,” the researchers said.
The researchers also found that “significant oversupplying of domestic natural gas supplies” had occurred in the last year.
“We have noted that gas is being sold for about 50 cents per Btu compared to the cost of domestic coal, gas and oil,” they said.
“Since this price increase has been occurring, the number of gas stations that have been forced into insolvency has also increased.”
The authors also said that “the price of natural gas is now more than four times higher than it was five years earlier”.
The price of the Australian Gas Standard (AGS) has risen by about 60 cents per unit in the past two years, and the price per unit of the price for gas in NSW rose by more than 80 cents over the same period.
The prices for gas have risen by more, on average, than 50 per cent over the past five years.
“In NSW, the average price of domestic liquefied natural gas (LNG) has increased by more then 300 per cent,” the paper found.
The price for LNG has been increasing at a faster rate than for gas, and is now about 10 times higher.
The authors said that while the price hikes had made gas less competitive in the Australian domestic market, the increase in the price has also meant that gas stations in the state have been “forced to reduce their prices to maintain the supply of gas”.
“Given the high cost of producing gas, this means that the supply-demand imbalance is exacerbating the problem,” they wrote.
“While there is some room for price increases in the domestic market in the short term, the long-term effects of gas shortages on Australian industry are likely to be more severe.”
Energy Economics is a journal that focuses on energy issues.
The authors of the report did not identify the causes for the shortages. “
There is a lot of potential for the gas industry to learn from this experience.”
The authors of the report did not identify the causes for the shortages.
“What is important is that we understand why there is such a mismatch between the prices of domestic LNG and the costs of gas, in this case for gas that is being exported from overseas,” he said.
Professor Schoen said that a key challenge facing the gas sector was how to manage the supply/demand balance.
The report is the latest in a series of reports on gas shortages that has come out recently. “
If we can identify what is going on, we can find solutions to the supply problems that are causing this mismatch.”
The report is the latest in a series of reports on gas shortages that has come out recently.
Last month, Australian Gasoline & Energy Limited (AGLE) released a report, Gas Shortage: How does the market look like?
which found that the price hike for gas had led to “significant inflation” in the prices consumers paid for gas.
And last month, the Federal Government released its own report, The State of Gas in Australia, which highlighted gas shortages and prices in a number of states.
“Gas shortages are not new to Australia,” Dr Schoen told Al Jazeera.
“They have been happening for years and years.”
“The reality is that there is a mismatch in prices between domestic and international gas.”
He said that the report was “very important” for the industry