The ACCC's latest report on the east coast gas market shows an improvement in the outlook for the remainder of 2023. 

The March 2023 interim gas inquiry report reveals that there should be enough gas supply to meet forecasted demand if LNG producers commit another 3 petajoules of gas to the domestic market. 

The new figures represent a 27 PJ improvement from the previous forecast in January. However, the report suggests caution in the winter months as there is still concern about the adequacy of gas supply.

The report provides relevant information to the government in assessing whether there is likely to be a supply shortfall for the purposes of the Australian Domestic Gas Security Mechanism.

The report also shows that in the fourth quarter of 2023, a surplus of 18 PJ is expected across the east coast gas market. However, in the winter months, an 11 PJ domestic gas shortfall is expected, including a 26 PJ shortfall in Victoria and South Australia. Additional gas will be required from Queensland producers.

Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb says she encourages producers to consider this information and amend their plans to ensure domestic demand is met each quarter. However, she notes that a risk remains that lower-than-expected gas supply or higher-than-expected domestic demand could lead to lower available gas supply.

It is important to note that this report only relates to the near-term outlook for 2023. The ACCC says it will continue to examine the long-term outlook in future reports.