Key gas observations for the month ending 15 June 2019:
The QLD State Government announced in its recent budget that it would increase the royalties tax faced by LNG producers from 10% to 12.5% as of 1 July. Unsurprisingly the increase in royalties has been poorly received in the gas market. Potential consequences of the rise in royalties is higher gas prices and less investment in new exploration, in turn increasing gas prices.
According to the ACCC the LNG netback price as at June was AUD $6.38/GJ. Forward prices for July are AUD $5.17/GJ and increase to AUD $9.27/GJ by January with prices rising at an accelerated rate from October.
The QLD Government released its $15 million hydrogen industry development plan. The strategy focuses on five areas:
Facilitating private sector investment
Ensuring an effective policy framework
Building community awareness and confidence, and
Facilitating skills development for new technology