EAST coast natural gas prices could soar to a hefty $18 per gigajoule, or five times traditional prices, if $70 billion of coal-seam gas export projects being built at Gladstone in Queensland are unable to meet LNG contracts with their own gas and are forced to chase other supplies.
The potential scenario has arisen after spot LNG prices in Asia reached a record last month and doubts persist over the amount of gas the three LNG projects, which are due to start exporting from Gladstone's Curtis Island this year, will have access to in their early years.
SXY Price at posting:
80.0¢ Sentiment: Buy Disclosure: Held
