Abstract

The Australian east coast gas market is experiencing arguably the most disruptive structural change since its inception, with the completion of the 25.4 mtpa Curtis Island Liquefied Natural Gas (LNG) facilities and the introduction of a fourth pillar to the market for domestic gas. However, this disruption was not in isolation and coincided with substitutional interactions with the electricity market already dealing with transition. This report develops context for the natural gas market, establishes the four major avenues of markets and then investigates eight fundamental supply and demand dynamics that are influencing the market in an interconnected fashion. The report concludes that all participants of the gas market must address the multiple dynamic drivers including economic consideration, government policy and regulatory engagement to avoid disorderly market transition.

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