Oxford Energy Podcast – LNG and Australia’s East Coast gas market
In 2017, a gas crisis emerged in Australia’s East Coast gas market. Gas prices had increased rapidly from mid-2016 as the full effect of the three LNG projects starting operations on Curtis Island worked through the gas market, putting domestic energy users under pressure. In March 2017, the Australian Energy Market Operator (AEMO) forecast gas shortages in coming years, potentially leading to blackouts and industrial closures. While gas shortages are no longer forecast, challenges in the East Coast gas market remain.
Building on their co-authored paper ‘Prices and crisis: LNG and Australia’s East Coast gas market’ that was published by the OIES in March 2018, David Ledesma and Nikolai Drahos discuss recent developments in Australia and the challenges ahead. They cover the reasons behind the recent crisis, why the world’s second largest LNG exporter may soon become an importer, and parallels with Oman and Egypt.