Yes, we previously stated that our proposal would place a ceiling on gas prices.
The Eastern Gas Market is already exposed to international pricing through export facilities in Gladstone, Queensland. However, there is currently no cap on these prices.
When gas has been in short supply gas prices have been much higher than international prices.
We can’t guarantee the project will bring prices down because it will depend on the market at that time. This is in line with the most recent AEMO Gas Statement of Opportunity, which was released recently, supported the development of LNG import terminals, saying:
“Continued interest in LNG import terminals, particularly in Victoria, New South Wales, and South Australia, would be expected to help relieve pressure on meeting southern gas demand during peak periods and assist in reducing pipeline constraints, but may do little to ease gas pricing pressures.”
However, we hope that, considering the expected supply shortage and pipeline constraints, this project will help to prevent the prices from increasing further and further.