‘Held to ransom': Esso-BHP gas production drop to be examined by ACCC

The competition watchdog will demand ESSO and BHP Billiton explain in more detail why gas supplies from its Bass Strait joint venture will decline sharply next year amid concerns the nation is "being held to ransom”.

Under scrutiny: A big drop in expected gas
 supplies from the Bass Strait has the ACCC
drilling for more information.

There are also calls for acting resources minister Barnaby Joyce to make public a study into offshore gas resources he has had for more than a month that could shed light on the venture's future.

The Turnbull government has so far blamed soaring gas prices on governments in Victoria and NSW for blocking or stalling on new gasfields, and in Queensland for allowing excessive LNG exports.

But by far the biggest contributor to the projected national shortfall of 55-108 petajoules of gas in 2018 will be the 86pj drop from the Esso-BHP's record output of 330pj  this year, according to a recent  Australian Competition and Consumer Commission report.

Read Peter Hannam’s story in today’s Melbourne Age - “‘Held to ransom': Esso-BHP gas production drop to be examined by ACCC.”