Australian upstream laments government grip on gas prices

The industry is calling for the return to market-led price-setting on the east coast

The Australian government cemented its grip over the east coast gas market last year with two major regulatory changes. Between implementing reforms to the Australian Domestic Gas Security Mechanism in April 2023 and enacting the Gas Market Code (GMC) in July 2023, Canberra has several mechanisms that are intended to avoid east coast supply shortfalls or price spikes. Indeed, the government has already closed several domestic deals with major producers using the GMC's exemptions mechanism. Nevertheless, critics argue these measures do not address the more significant issue of encouraging investment, arguing greater government control over gas sales does little to improve production. Forecast