The brochure and order form for EnergyQuest’s multiclient report ‘Australia’s proposed domestic gas reservation: A gas market fix that doesn’t fix much‘ is available by clicking here.
A gas market fix that doesn’t fix much
The Australian Government has announced it will introduce the first national domestic gas reservation scheme. Its intention is to increase domestic supply and put downwards pressure on prices.
This multi-client report concludes the scheme won’t secure material additional domestic supply for almost a decade. The gas reservation scheme also does not address the critical issue of deliverability during peak demand. Without increasing the capacity of the east coast gas network to deliver high volumes of gas there are likely to be supply shortfalls when gas is needed most. The fix doesn’t fix much.
The report:
- Examines the key principles identified by government for design of the scheme, and how the proposed national scheme is very different from the existing Western Australian domestic gas reservation
- Assesses the likely application of the national gas reservation scheme to LNG projects in WA, the Northern Territory, and Queensland
- Examines the likely impact of the national gas reservation scheme on potential annual and peak-day demand shortfalls, and identifies options to avoid shortfalls
- Identifies implementation risks
- Provides key points for market participants by segment
The report shows that there will be little market impact from the scheme for almost a decade due the constraints imposed by the government’s design principles and other limits to the extent of intervention. The report details the key issue of deliverability to meet peak demand in the southern region, which is a problem that will not be solved by a reservation.
The 55-page multiclient report is a key resource for all market participants seeking to understand the nuances of how the policy is likely to impact domestic gas supply, commercial reserves, and pricing.
The report brings together EnergyQuest forecasts, market, regulatory, and political analysis to identify how the proposed scheme is likely to play out.