Government’s announced gas market intervention aimed at prioritising domestic supply. Surety of supply and increased competition amongst gas producers can benefit businesses. New supply sources welcomed given current pricing and reliability pressures.
Energy Action Limited (ASX:EAX) today advises that an anticipated increase in domestic gas supply, following the Federal Government’s move to restrict Australian gas exports, has the potential to increase competitive tension in the gas market with positive implications for Australian commercial gas users.
Energy Action’s Chief Executive Officer, Ivan Slavich, said: “the increase in the domestic gas supplies should lead to more positive outcomes for businesses over the coming years.
“Energy Action’s view is that any increase in supply and reliability for commercial gas users has the potential to assist businesses to manage operational risks associated with steeply rising gas prices and ongoing concern around future shortages.
“We expect that the introduction of new gas supply sources will also spark greater competitive tension in the Australian gas market.
“While it is too early to forecast the specific impact on local gas pricing, Energy Action will be closely monitoring the market’s response to the increase in the gas supply and the implications for energy procurement and management strategies for businesses,” Mr Slavich concluded.