In the age today, doesn't bode well for gas pricesSantos has...

In the age today, doesn't bode well for gas prices

Santos has signalled gas prices in eastern Australia will rise more than 40 per cent over the next few years, reaching to more than $8 a gigajoule.

At the same time, it said it plans to bring its controversial Narrabri gas project on stream in 2017.

The forecast east coast price of more than $8 a gigajoule is much higher than its average gas price received of $5.67 in the second half of fiscal 2013.
Advertisement

At the same time, Santos told analysts at a briefing this morning "NSW natural gas is critical to east coast energy security".

"Additional supplies to meet increased demand with a tripling of gas demand to tighten the market," it said.

As a result, "new gas supply sources are needed in 2015-2020 to meet the supply challenge".

Along with production planned from Narrabri, in north west NSW, Santos said gas capacity in the Cooper Basin will rise 10 per cent in 2013 and by 30 per cent in total by 2015, as it prepares to meet rising demand from gas from a series of export gas projects being built in Queensland.

Santos told analysts initial Narrabri output is planned at 200 terajoules of gas a day, aiming to supply half of NSW gas demand, which would result in "material" royalty payments to the NSW government.

Read more: http://www.smh.com.au/business/mining-and-resources/east-coast-gas-prices-set-to-jump-by-40-per-cent-santos-20131204-2ypr3.html#ixzz2mSsiey2A