All three projects, valued at more than $63 billion, are estimated to contribute a third of the $46.7 billion worth of Australia LNG export values by 2019-20.
“By the time all six trains are operating, east coast gas production will need to have tripled to meet both LNG and domestic demand from industrial, commercial and household customers and remaining gas-powered generation.”
And while the onset of coal seam gas developments in the Cooper Basin was anticipated to provide some respite for the supply glut, Mr Sims said the east coast market remains threatened by gas supply uncertainty.
The shift in market focus has prompted a scarcity in gas supply offers to local consumers since final investment decisions were made at Australia’s major LNG projects in 2010-11, the ACCC chairman added.
The ACCC suggested that upstream LNG producers were favouring trades among themselves, instead of prioritising consumer demand. And when consumer deals had been made, the life of the contracts were dramatically shorter than in previous years.