Australia's Competition Regulator flags gas import requirements for the East Coast

The Australian Competition Regulator said that the east coast of Australia is likely to experience a gas shortage by 2027, which could lead to imports. It cited its gas inquiry report.

The Australian Competition & Consumer Commission stated that the report found the development of new production and supporting infrastructure for gas has not kept up with the increasing demand.

It is anticipated that the east coast gas market will have surpluses in 2025 and 26 but may face shortages afterward due to structural declines and uncertainty regarding future investments.

Anna Brakey, ACCC commissioner, said that "our current projections show the possibility of structural gas shortages on the East Coast from 2027" unless the supply or demand increases.

The ACCC stated that the building of new domestic gas supplies includes many challenges, including "lengthy regulatory approval procedures" and "an unpredictable policy environment".

Brakey stated that in order to improve the long-term outlook it was essential to introduce measures that would support an efficient and timely investment along the East Coast and, more generally, a smooth transition on the electricity and natural gas markets. (Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)

(source: Reuters)