WA domgas prices are on the decline. Average spot price is around $3.50/GJ (although admittedly the spot market is v small). There will be a further increase in WA domgas supply as Gorgon and Wheatstone enter operational phase over the next 2 years. Following the HESS/NWS announcement last year it is unlikely that Karratha gas plant will decommission in the near future. The slump in world LNG prices will also flow through to the WA market if the decline continues (NWS producers have the choice between selling domgas or LNG)
On top of this, the demand for gas in WA is in decline as small scale solar pv and other renewables have displaced growth in gas fired generation in the SWIS and declining commodity prices are having a negative effect on alumina refiners/mining.
Interesting comments from a punter. I would have thought the Perth domestic demand is strong.
Does anyone know if the big boys get a better deal exporting their gas?
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