I'm not saying that households gas consumption is the only use, according to the most recent ABS data, approximately 14% of gas is consumed by households. This will be going down to low single digits in future and will become a significant headwind. The use of hydrocarbons (33%) and energy generation (32%) accounts for 65%, while industry application of gas is roughly 21%. I would expect the combined industry/household use of ~35% to decrease while energy generation and industry hydrocarbon use to stay relatively stable. I would also expect renewable technologies to eat into the energy generation usage of gas.
The reduced demand will be a headwind post-2025. I am only focusing on Australia but I believe this to be a macro trend exacerbated by current geopolitical events. A positive is that biomethane will have to replace natural gas in the transition.
DEL Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
