A serious gas shortage on Australia’s east coast, which would see factories shut and jobs disappear, has been predicted by a Credit Suisse analyst.
The Australian reports that the financial services company’s Mark Samter said there could be a serious shortfall for 2019/20, and that serious action was needed three or four years ago. The shortage would cause factories to close and jobs to be lost forever, said Samter.
“It seems unavoidable now that serious pain will have to be felt by many parties,” he told The Australian.
To blame were financial difficulties for gas companies (due to factors such as low oil prices), the cost of developing new projects, and policy discussions, according to Samter.
The Victorian government announced a permanent ban on fracking last month.
There have been significant price increases for users, who have been used to paying between $3 and $4 in recent years. The opening up of Queensland LNG to export markets has also seen local users pay prices above those of the most expensive gas market in the world, north Asia.