The Australian Energy Regulator (AER) has today released a July gas markets event report analysing drivers of higher price gas days in the Victorian wholesale gas market and the STTM wholesale gas markets (Sydney, Brisbane, and Adelaide STTM hubs) over July 2012.
July 2012 saw the highest ever ex ante price in the Adelaide STTM hub and the highest ever daily price in the Victorian wholesale gas market since November 2008. Both prices replaced June high price records. Consistently higher prices which began in June continued to occur in all markets over July and lead to a steady incline in the 30 day average price.
In the STTM hubs, re-offering of gas volumes into higher prices by trading participants such as AGL, Origin and TRUenergy on a number of the high price days, caused the market prices to be significantly higher than forecast.
The AER will release an August report on high price gas days in the near future.