Domestic gas prices continue to be below LNG export prices.

As reported in the March 2017 EnergyQuarterly report, Australian domestic gas prices continue to be lower than export prices and with higher LNG prices and flat domestic gas price realisations LNG prices and domestic gas price realisations diverged in Q4. The average Q4 LNG price realised by the NWS, Santos and Origin was $8.24/GJ compared with the average domestic realisation of $5.33/GJ, a difference of $2.91/GJ, up from $1.47/GJ in Q3.

In Q4 east coast LNG prices and short-term prices also diverged although the gap is smaller.  In Q4 the average Origin LNG price was $8.14/GJ compared with an average short-term price of $6.95/GJ, a difference of $1.19/GJ. In Q3 east coast short-term prices averaged $1.18/GJ higher than the Origin LNG price. In WA spot prices continue to be below NWS domestic prices and well below LNG prices.

Tokyo Gas publishes residential gas prices. For the average consumer of 32 cm costing Yen 4,737 in April that is A$38.89/GJ at an exchange rate of  A$1.00=Y84.5887. (Australia is the biggest LNG supplier to Japan.) Our latest AGL gas bill averages A$29.47/GJ.