Gas Market Prices – 15 May 2019

Key gas observations for the month ending 15 May 2019:

  • Average gas demand from Curtis Island for the month was 3,714TJ/day which was marginally above the Q119 demand which was a record high at 3,657TJ/day (AEMO Quarterly Dynamics – Q1 2019).
  • Santos reported it had signed Memorandums Of Understanding (MOU) with Brickworks and Weston Energy for Narrabri gas during the month. The arrangements have pencilled in 3PJ/annum for seven years for Brickworks and 10PJ/annum for ten years for Weston Energy with supply beginning post 2023. Kevin Gallagher made comment saying “We have committed 100 percent of Narrabri gas to the domestic market”.
  • NEM electricity demand softened relative to month prior and consequently we saw a decline in generation; gas generation reduced by 9%.
  • The historical LNG netback price according to the ACCC was AUD$5.46/GJ. This is the lowest price since June 2016 (ACCC, Gas Inquiry 2017-2020, May 2019). The forward price however slowly moves up between now and September, and then as winter hits parts of the northern hemisphere it increases quickly.





Source: AEMO / ASX Energy