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The Internationalisation of the Eastern Australia Gas Market
Klara Ildarovna Gadeeva Ed.S., MSc
Project submitted in partial fulfilment of the requirements for the degree of MSc (Energy and Resources), UCL School of Energy and Resources, Australia
Over the past decade, the Eastern Australia gas market has increasingly relied on the rapidly growing coal seam gas sector for its supply mix. This has brought relative stability and predictability to the market. The success of the coal seam gas industry, however, has introduced a set of new conditions that threatens to undermine the stability it once brought to this market. A swing factor has been introduced into the market by the sanctioned and proposed coal seam gas liquefied natural gas projects in this region. These projects are likely to divert large volumes of domestic gas to export markets, resulting in strained domestic supply conditions. Gas hungry industrial users in Australia will now effectively have to compete with Asian liquefied natural gas importers. This dissertation argues that due to the internationalisation of the Eastern Australia gas market, domestic gas producers and industrial gas users in this region are exposed to an extreme and unprecedented level of price uncertainty in the domestic gas market. This is a timely dissertation that examines just how, and the extent to which, this uncertainty is likely to affect Eastern Australia domestic gas prices over the next decade as this market develops and producers and consumers respond to these brave new market dynamics.