Wholesale gas prices hit five-year highs

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“With more than 100 contracts to supply gas to major domestic customers since 2012 and an independent consultancy finding that local prices are no higher than those paid by overseas customers, our markets are working,” he said. “This latest whining is just desperate scare tactics.”

The Energy Users Association of Australia, a group representing heavy industrial gas consumers like Qenos, Incitec Pivot and Brickworks, said the recent spot price increases are not reflected in supply contract offers, “which is encouraging”.

“But there are a lot of storm clouds on the horizon,” said CEO Andrew Richards.

“If it continues over a longer period of time … then we fear that much higher costs could flow back into the domestic market.”

Domestic natural gas consumers had come under pressure from the sharp rise in gas prices in recent years, up to $ 14 per gigajoule in 2019, before falling to around $ 6-8 per gigajoule in 2020. Mr. Richards urged major natural gas suppliers to offer fair deals on domestic gas contracts.

“Some people feel pain on $ 10 gasoline, but some people go out of business,” he said.

“We’re putting it aside for the gas producers: if you really care about your domestic customers, you shouldn’t hollow them out.”

Although the demand for gas as a fuel for heating, cooking, manufacturing and generating electricity is hot, global efforts are being made to reduce all fossil fuels as part of accelerated efforts to curb global warming, and questions remain about its long-term future outlook . The International Energy Agency released a landmark report in May warning investors not to fund new oil and gas fields for the world in order to meet the ambitious Paris Agreement target of limiting global temperature rise to 1.5 degrees.

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