EAST COAST GAS MARKET UPDATE

17 September 2026

Weekly Spot Price Movement

Prices for the Remainder of the Week

Prices for the remainder of the week are expected to remain relatively stable, with Sydney forecast between $10.18–$10.22/GJ, Adelaide between $10.10–$10.25/GJ and Brisbane between $10.13–$10.32/GJ. Sydney is expected to remain largely flat, while Adelaide is forecast to strengthen slightly into Thursday and Friday. Brisbane is expected to ease progressively through the remainder of the week, falling from $10.32/GJ on Wednesday to $10.13/GJ by Friday.

East Coast Supply and Demand

East Coast supply and demand remain relatively balanced, although demand is currently exceeding supply by 60 TJ. This compares with a 33 TJ surplus last week, representing a 93 TJ week-on-week deterioration in the net position and a shift from surplus to shortfall

Iona Gas Storage

Iona storage has edged down from 12,973 TJ (53%) last week to 12,954 TJ (53%), a week-on-week reduction of 19 TJ, with capacity utilisation unchanged at 53%. 

The facility remains in withdrawal, with a 61 TJ daily draw, up from a 29 TJ withdrawal last week, indicating a stronger rate of gas being drawn from storage. 

Outlook

East Coast gas market conditions remain relatively stable, with STTM prices continuing to trade around the $10–$11/GJ range. The supply-demand balance has tightened, with demand exceeding supply by 60 TJ, compared with a 33 TJ surplus last week, representing a 93 TJ week-on-week deterioration in the net position. 

Iona storage remains an important indicator to watch, with levels easing slightly from 12,973 TJ to 12,954 TJ over the week, while capacity utilisation remains unchanged at 53%. Daily withdrawals have increased to 61 TJ, compared with 29 TJ last week, indicating stronger drawdown activity. With winter now ending, attention will increasingly turn to whether storage levels stabilise and begin rebuilding through spring. 

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Market News – Last 7 Days

Santos-led GLNG contract extension raises questions over gas reservation rules – 16 September 2026 

The Santos-led Gladstone LNG project could extend its major LNG supply agreement with Korea Gas Corporation by a further five years. The potential extension has raised questions over whether those export volumes would remain protected as part of an existing contract or become subject to the Federal Government’s new domestic gas reservation requirements. The issue is particularly relevant to the East Coast market given GLNG’s historical reliance on domestic gas and the Government’s efforts to secure additional local supply.  

The Australian 

Government softens proposed East Coast gas reservation scheme – 10 September 2026 

The Federal Government has revised its proposed gas reservation framework, replacing the previously proposed fixed 20% domestic obligation with a requirement of up to 20%, calibrated annually by the Australian Energy Regulator. The scheme is intended to maintain supply at around 110% of forecast East Coast demand and has been delayed until 1 January 2028, with existing export contracts protected. Industry groups welcomed the greater flexibility but continue to argue that mandated oversupply could discourage investment in new gas production.  

Reuters 

Santos says GLNG will stop contracting third-party gas for exports – 9 September 2026 

Santos chief executive Kevin Gallagher has said the Gladstone LNG project will no longer contract third-party gas from the domestic market to meet its export commitments. GLNG has faced criticism over its historical purchases of domestic gas, with some analysts arguing this contributed to tighter East Coast supply. Santos says future export commitments will instead be met from its own gas and other arrangements, potentially reducing competition between GLNG and domestic buyers for available East Coast supply.  

The Queenslander / AAP