LNG netback price series review 20251 Apr 2026
As part of the 2017–2030 gas inquiry the ÌÇÐÄÔ´´ has undertaken a review of the LNG netback price series.
The ÌÇÐÄÔ´´ previously reviewed the LNG netback price series in 2021–22. Since then, there have been significant developments in both global LNG and domestic gas markets.
The ÌÇÐÄÔ´´ has again reviewed the LNG netback price series to ensure that it remains an accurate resource for market participants and to provide certainty with respect to our methodology during the transition period for any relevant gas policy reform.
Issues for consultation
On 22 December 2025 the ÌÇÐÄÔ´´ published its December 2025 gas inquiry interim report. Stakeholder views were sought on key matters that were set out in part 3 of the report.
The consultation closed on Friday, 6 February 2026.
Submissions to the review
Outcomes of the review
The ÌÇÐÄÔ´´ will maintain the key aspects of the current methodology for calculating LNG netback prices.
These key aspects will include:
- the Japan Korea Marker (JKM) as the reference price for the short-term price series. The JKM is the most relevant international LNG price for Australian exports
- Brent crude oil as the reference price for the medium-term price series as it is relevant to longer term Australian LNG contracts
- a 2-year timeframe for the short-term price series given the liquidity constraints on JKM futures beyond 2 years
- a 5-year timeframe for the medium-term price series given the 3-year to 5-year price review clauses common in longer term LNG contracts
- the current methods of accounting for freight, liquefaction, and pipeline costs as there is broad agreement that they remain appropriate.
We will also revisit:
- our LNG netback price series guidance. We will ensure the guidance clearly communicates the purpose of the series and the uncertainties associated with the medium-term prices relative to the short-term prices
- the consultant engagement on the methodology for linking Brent and LNG prices.
We have considered the report from FTI Consulting on the suitability of the current methodology and the submissions received. The outcome aligns with both the conclusions of FTI's analysis and the majority view within submissions received.
The ÌÇÐÄÔ´´ will continue to monitor market developments to ensure that we are providing accurate and relevant information to market participants.