Cooper Energy's Sole-3 gas well in the Otway Basin.
Cooper Energy's Sole-3 gas well in the Otway Basin.

Cheaper gas prices expected next year

GAS prices for 2020 are expected to be cheaper than this year.

A report by the Australian Competition and Consumer Commission released on Thursday also found there would be sufficient supply to meet forecast domestic and export demand in 2020.

East coast gas firms are expected to produce an extra 113 petajoules of gas, with demand predicted to be 16PJ lower.

Offers made by producers in Queensland for supply in 2020 have generally been below $10 per gigajoule.

However, prices offered to commercial and industrial users in the NSW and Victoria have mostly remained in the $10-12/GJ range.

Treasurer Josh Frydenberg said while a series of measures is working to improve gas supply and push down prices, the states and territories must remove blanket bans and moratoria on conventional and unconventional gas exploration.

Labor energy spokesman Mark Butler said Australians were still paying too much for gas, putting jobs and businesses at risk.

"The ACCC also confirms that while Australia is the world's largest gas exporter, Australian gas users are paying more for their gas than users in other exporting countries (such as the US and Canada)," he said.