Piedmont Natural Gas price to fall for the first time in six months

The cost of gas in the southern Pied-Nam gas region of Queensland is set to fall by up to 3.5 per cent, according to new forecasts.

The region is home to some of the world’s most productive and wealthy deposits of gas, which account for about two-thirds of Australia’s supply.

The average price of gas at the pump has dropped to about $US10.70 per thousand cubic metres (MMcm) from about $11.50 per MMcm earlier this month, according in the latest report from the State of Queensland.

It is the first price drop in six years and it is set for a 3.6 per cent drop over the next three months, which will be followed by another 3.3 per cent in the following two months.

Piedmoches gas fields have produced about 1.5 billion cubic metres of gas since 2006, according the Queensland Energy Commission.

The price drop will have a big impact on Piedmouth residents and businesses, particularly in the Piednose, Piedmoon and Middelberg communities, which are currently struggling to pay for the cost of running their businesses.

“Gas prices are going to be a huge problem for the Piers Creek area, which is a very well-established and well-managed region,” said Piedmillian, a Piedmonger.

“That’s going to have a knock-on effect on other communities in the region.”

However, the report predicts that the price drop is expected to be “limited” by the recovery of the Priba Gas Field in the next few years, which would result in a more reasonable price in the future.

“There’s a good chance that it will continue to fall,” said Mike Smith, Pribanian’s CEO.

“It’s just a matter of when, not if.”

A price freeze for Pribans Gas Field is also set to be in place, but only for a few months, until the field is back on its original state.

The state government said it expected to start lifting the price freeze by the end of the year, and by 2018, prices would be “much lower”.

“I would expect that gas prices in Pribapans will continue lower than those in other parts of Queensland, as a result of the recovery from the Piba gas field,” said the State Government’s energy and gas spokesperson, Paul Daley.

“In the long term, we’ll need to continue to look at price and how it impacts households.”