AUSTRALIA’S huge natural gas resources will be liberated and secret trading opened up in a plan to bring down household electricity bills.
One objective backed by energy ministers will be to narrow the price gap between what is paid for gas overseas and what Australian customers are charged — sometimes for the same product.
And the plan will see the tiny Queensland town of Wallumbilla, population 262, become one of two hubs directing trading in the multi-billion dollar gas market.
Energy Minister Josh Frydenberg said he and his state counterparts had agreed to a strategy to boost competition among gas providers and buyers to cut prices.
And they want to reinforce that by increasing the availability of gas.
“So if we can get more liquidity and more transparency into the gas market, ultimately more supply as well, then that will create lower electricity prices in Australia and lower gas prices,” Mr Frydenberg told news.com.au today.
Australian gas is essential to the economy. About 31 per cent of it is used for electricity generation and 11 per cent for residential heating and cooking.
“Ultimately, gas is the important transition fuel for the Australian economy,” Mr Frydenberg said.
“It’s half the emissions of coals and it increasingly sets the price for electricity. So when you are working out the total cost of electricity, gas is one of the absolutely key factors in electricity prices.”
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