Australian Gas Prices Remain Stable as Supply Outlook Improves for 2027
An increase in contracted gas volumes and steady long-term pricing suggest Australia’s east coast market is maintaining stability despite elevated international prices.
Australian gas prices have remained relatively stable as buyers secure larger volumes of future supply, according to the latest report from the Australian Competition and Consumer Commission (ACCC). The report indicates that wholesale prices across the east coast market have been largely insulated from elevated international gas prices, supported by improved contracting activity and the availability of supply.
During the first half of 2026, buyers contracted significantly more gas for delivery in 2027 than during the corresponding period a year earlier. The increase suggests that businesses are taking steps to secure future requirements while long-term contract prices remain broadly steady.
Gas Contracting Increases Sharply for 2027
East coast gas buyers contracted 51 petajoules (PJ) for supply in 2027 during the first half of 2026. This was more than double the volume contracted over the same period in the previous year.
Buyers also secured 43 PJ for delivery in 2028, indicating continued activity in forward contracting beyond the immediate supply period.
The stronger contracting volumes point to an active market for securing future gas requirements. For businesses that rely on gas, arranging supply through longer-term agreements can provide greater visibility over future procurement costs and reduce uncertainty about availability.
However, the increase in contracted volumes does not, on its own, establish how the market will perform over the coming years. Future price movements will continue to depend on supply conditions and the terms under which buyers secure gas.
Long-Term Contract Prices Remain Around $12–$13/GJ
Despite elevated international prices, long-term contract prices for gas scheduled for delivery in 2027 and 2028 remained around $12–$13 per gigajoule (GJ) during the first half of 2026.
The ACCC reported that wholesale prices in Australia’s east coast market appeared to be largely unaffected by higher international market prices. This suggests that domestic contracting conditions have remained comparatively steady over the period covered by the report.
Contract structures have also played a role. Most new supply agreements entered into between April and June 2026 used fixed-price arrangements, rather than pricing directly linked to international commodity markets.
Fixed-price agreements can provide buyers with greater visibility over contracted gas costs for the relevant period. By contrast, contracts linked to international commodity prices may expose buyers to movements in those markets.
The predominance of fixed-price arrangements among recent agreements is therefore an important feature of the current contracting environment, although the report does not establish that all gas buyers are protected from price fluctuations.
What the Supply Outlook Means for Australian Businesses
The combination of increased contracting activity and relatively stable long-term prices provides a more settled picture for businesses planning their gas requirements for 2027 and 2028.
For gas-dependent businesses, securing supply ahead of delivery can help improve planning around procurement costs. Nevertheless, individual outcomes will depend on contract terms, volumes required and the timing of supply agreements.
The latest findings also highlight the importance of distinguishing international gas price movements from conditions in Australia’s domestic market. Elevated global prices have not translated into an equivalent increase in the long-term contract prices reported for east coast buyers during the first half of 2026.
While current conditions indicate relative stability, they do not guarantee that prices will remain at these levels over the longer term.
What Investors Should Watch Next
The ACCC’s next gas market report is scheduled for December 2026. It should provide a further update on contracting activity, pricing trends and the outlook for domestic gas supply.
Investors following Australian energy markets may watch whether buyers continue securing future volumes, whether long-term contract prices remain within the recent range, and whether fixed-price agreements continue to account for most new contracts.
For now, the latest ACCC findings point to a relatively stable east coast gas market, supported by stronger forward contracting and long-term prices holding around $12–$13/GJ. Whether this stability continues into 2027 and beyond will depend on how supply conditions and contracting patterns evolve.
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