Impact of gas exports on Australian energy prices
Authors
Media release
Gas exports have tripled Australian gas prices and doubled electricity prices
Until the mid-2010s, wholesale gas prices in eastern Australia were low.
Prices were substantially below those paid in other countries, due to the ample supply, modest demand and, crucially, gas companies’ inability to transport Australian gas to international markets.
All this changed with the decision to build gas export terminals in Gladstone, Queensland, that began shipments in January 2015.
Suddenly, gas companies were able to sell into higher-paying markets.
As was clear at the time, the effect of linking the east coast of Australia to international gas markets was to increase prices for Australian consumers.