Statement on east coast domestic gas
Sep. 20, 2017
Shell understands that if it wants to maintain a social license to export gas Australian customers must have access to reliable and affordable gas supply.
Through its projects in Queensland, Shell has consistently produced more gas than it has exported - with the balance being sold to east coast customers.
Shell has responded to local market conditions - for the last two winters the company has diverted gas bound for export markets to locations like Melbourne.
This year Shell will sell 75 petajoules of gas to east coast customers - this represents ten per cent of the entire east coast gas market from the QGC project.
Shell has also established a new business based in Melbourne that is dedicated to selling Australian gas locally - signalling the company’s long term ambition to supply customers across Victoria and New South Wales.
East coast customers are paying more than twice as much to get the gas from where it is produced to where it is used as customers on the west coast - a cost that is ultimately paid by households and businesses. This cost will continue to be felt by customers until the pipeline access reforms identified by the ACCC in 2016 are fully implemented.
The best interests of customers is served by producing more gas close to where the customers use it. That means lifting bans on onshore gas production in Victoria and New South Wales - while continuing with ACCC recommendations on pipeline reform and enhancing retail transparency.
Quotes can be attributed to Zoe Yujnovich, chairman Shell Australia