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Below is a summary of the key findings and recommendations drawn from the Gas Market Inquiry 2017 – 2025 Interim Report released on 17 August 2020 (Report). The Report focused on the effects on the east coast gas market that have arisen as a result of both the COVID-19 pandemic and the significant falls in oil and LNG prices. According to the Australian Competition and Consumer Commission (ACCC), these have been felt at all levels of the supply chain and highlighted the pressure points and areas of dysfunction present in the market.
Despite uncertainties supply outlook in 2021 remains promising
Positive developments in the east coast market
Prices agreed to under Gas Supply Agreements (GSAs) have also softened
Prices in facilitated gas markets
Transportation facility increases
Storage price increases
Between July 2019 and January 2020, the prices paid on the Dandenong storage facility increased in line with inflation, while the maximum price paid by users of the Iona storage facility increased by more than inflation.
Contract terms appear to be increasing
Fully contracted facilities limiting access to capacity
Addressing price concerns and potential supply shortfalls
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Johnson Winter & Slattery has appointed James Love as a new partner in its Melbourne based Dispute Resolution team, effective as of 2 November 2020.