Gas buyers on Australia's east coast contracted 51 petajoules (PJ) of gas in the first half of this year for supply in 2027, which is more than double the volume contracted in the first half of last year.
The ACCC's latest Gas Inquiry report also reveals commercial and industrial gas users, and other large gas buyers contracted more gas at this point in the supply cycle than in the previous four years.
Gas buyers contracted 43 PJ of gas for supply in 2028, exceeding volumes contracted at the same stage in either of the past two years.
Average prices under long-term contracts for 2027 and 2028 supply remained steady at around $12 to $13 per gigajoule (GJ) during the first half of 2026.
"It is encouraging to see gas users securing more gas at broadly stable long-term prices, which is important for business certainty," ACCC Commissioner Anna Brakey said.
The report also shows wholesale gas prices on Australia's east coast appear largely unaffected by elevated international prices.
"Most new gas supply agreements entered into between April and June 2026 were struck at fixed prices rather than linked to international commodity markets," Ms Brakey said.
Gas commodity prices agreed in the east coast market for 2027 supply
Source: ACCC analysis of GSA information provided by suppliers.
Notes: Price ranges and volume-weighted averages are shown for each period. Where no price range is presented, this is due to confidentiality reasons. Prices are based on assumptions as of 31 July 2026. All GSAs are for quantities of at least 0.5 PJ per annum and a contract length of at least 12 months.
Sufficient supply forecast for early 2027
The report indicates Australia's east coast has sufficient wholesale gas supply to meet forecast demand for the period between January to March next year.
A gas supply surplus of 5 petajoules (PJ) in the first quarter of 2027 is expected if the liquefied natural gas producers export all their uncontracted gas.
This period, which covers the warmer months and usually sees less domestic demand for gas, typically has allowed more LNG to be exported to meet winter demand in the northern hemisphere.
Australia's southern states are expected to have enough gas in quarter 1 2027, although some additional gas from Queensland, withdrawals from storage or increased southern production may be needed in February.
The southern states are expected to rely more on gas from Queensland and withdrawals leading into and through winter 2027, with local production expected to fall short of demand by 64 PJ during April to September 2027.
"Replenishing storage facilities in the early months of next year will remain important for maintaining reliable supply during periods of higher demand," Ms Brakey said.
East coast supply-demand outlook for 2027 (PJ)
Source: ACCC analysis of data obtained from gas producers in July 2026 and of the domestic demand forecast (Step Change scenario) from AEMO, Gas Statement of Opportunities, March 2026.
Background
Australia's east coast gas market is an interconnected grid joining Queensland, New South Wales, Victoria, South Australia, Tasmania and the Australian Capital Territory. The Northern Territory and Western Australia are separate gas regions.
The ACCC's inquiry examines the wholesale gas market, primarily gas sold by producers to large gas buyers, including commercial and industrial gas users and gas retailers.
The report's supply projections and information on contract prices and volumes reflect market conditions as at 30 June 2026.
The ACCC's next gas inquiry report is scheduled for December 2026.
