Gas prices rise to new high as new supply stops flowing
Prices for the country’s biggest natural gas retailer, SMETS, have jumped to their highest since October 2016, despite the country running out of gas.
The price of the u65 gas market has also increased to about $4 a unit from $3.50 a month ago, according to a market research report by the National Gas Market Operator (NGA).
The prices for the u60, u60m and u60g gas markets have all increased over the past few weeks, according the report.
“We’re running at about $5 a unit and that’s not going to be enough to sustain our customers and continue to deliver the services they’ve come to expect,” SMETS managing director Tim MacKenzie said.
Mr MacKenzies comments came as a warning from the NSW Energy Minister that the state will run out of electricity in June if the government does not act quickly to increase supply.
“We’ve been able to sustain that for the past month and there’s a significant amount of gas coming in,” he said.
“If we don’t get our act together and do something quickly we’re going to run out, I’ve said that before.”
The energy market regulator, the Australian Energy Market Operator, said that the NSW Government had not committed to increase the supply of gas from the Maroochydore LNG project, which is expected to begin exporting gas to NSW in late 2020.
NGA’s research shows that the u68, u68m and i70 gas markets in NSW have increased from $4.50 to $4, $4 and $4 respectively in the past 12 months.
However, there is no change in the prices for all other markets, the report found.
“There’s been a significant increase in gas prices,” Mr MacKennies said.
“That’s the only way we can continue to service our customers.”
So we’ve got to keep on getting gas from our existing supply.
That’s the most important thing.
“Mr MacKennys comments come as Mr Shorten said that he would be looking at the energy sector as he sought to boost the economy.”
I don’t think it’s the time to talk about the economy,” Mr Shortes comments were made on ABC Radio National.
‘The future is uncertain’The NGA’s Mr MacKennies said there was a lack of certainty in the energy market.
He said there were still some issues with the supply chain, and a shortage of new equipment to run gas stations.”
The issue we’ve had is there’s been an oversupply of gas and we’ve been having a lot of difficulty in dealing with that.
There’s been no supply coming in to our stations,” he explained.”
You’ve got the u70 and u70m, which are both in Sydney, and u65, which we don [have] in the NT.
“Mr Shorten’s comments came days after Mr MacBennys energy adviser, Dr Anthony Jones, told the ABC that there was “very little certainty” as to the future of the natural gas market.”
In terms of the supply side, the key thing is the price,” he told the Nine Network.
But Mr Shortens comments have sparked a backlash from energy users and politicians, who have criticised his lack of confidence in the future supply of natural gas.”
This is not the way the future is going to work,” Liberal MP John McTernan said on Tuesday.”
It is a matter of confidence that the Government is taking on this issue and that they are taking this seriously and that this is a significant problem.
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