AGL Energy Limited (ASX:AGK) CEO Michael Fraser says east coast gas prices could hit more than $10 per gigajoule, according to media reports.
Mr Fraser says as power generators and industrial users absorb the effects of $70 billion worth of LNG plants being constructed at Gladstone, domestic demand will likely come under pressure and push gas prices higher.
He says there will likely be a shortfall in gas during the early years of the project.
The reports say that when the three Queensland projects begin, east coast demand for gas will triple.
AGL generated a net profit of $389 million in fiscal 2013.
AGK Price at posting:
$15.35 Sentiment: None Disclosure: Held
