Key gas observations for the month ending 16 August 2018:
APA Group has accepted a $13 billion takeover bid from CK Infrastructure Holdings. The takeover remains subject to approval from Australian competition and foreign investment bodies.
Access to new gas resources remains challenging due to each of the state and territories have different regimes for allocation, management, exploration development and production when it comes to bringing new gas online.
A 2013 survey published by the Australian Industry Group found that nearly half of the 61 gas-using businesses surveyed in Eastern Australia were looking for new gas supply agreements. Of those, nearly 10 per cent reported that they could not get an offer at all, a third reported that they could not get a serious offer and a quarter reported that they could get an offer from only one gas supplier.
There has been a reported increase in the prevalence of domestic gas contracts being indexed against oil prices.
There are a range of factors which could be increasing prices which include domestic exposure to international prices, rising costs of production and development production uncertainty.
The average gas price over the 30 day period beginning 16/07/2018 was higher in the STTM markets and VIC Market relative to the same 30 day period a year earlier.
Brisbane had the highest average price of the all regions for the before mentioned period.