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AU ANZSIC D2700 | Industry Report

Gas Supply in Australia Industry Data and Analysis

MR
Matt Reeves
Analyst Melbourne, Australia October 2024

The Gas Supply industry consists of gas retailers that buy and sell gas, and gas distributors that operate the distribution networks carrying gas to end users. The retail and distribution functions are separated by regulation, with different companies performing these activities. Gas retailing accounts for the majority of industry revenue and is dominated by three companies; AGL Energy Limited, Origin Energy Limited and EnergyAustralia Holdings Limited. SGSP (Australia) Assets Pty Ltd, trading as Jemena, is among the largest gas distribution companies.Industry revenue is expected to rise at an annualised 2.2% over the five years through 2024-25, to $16.3 billion. This includes an anticipated decline of 9.6% in 2024-25 as prices ease. Turmoil in global energy markets related to the pandemic and the Russia-Ukraine war has flowed through to volatility in domestic gas prices. Strong competition among retailers has constrained growth in revenue and profit margins, with the larger retailers losing market share among residential customers. The development of LNG export facilities over the past decade has caused a significant share of Australian gas production to be shipped overseas, creating concern over domestic supply conditions on Australia's east coast. High prices on the domestic market have prompted an industrywide decline in profit as a share of revenue.The domestic price of natural gas is projected to remain elevated, with concerns over tightening supply conditions on Australia’s east coast. LNG exporters are likely to allocate a greater share of production to the domestic market to limit further market intervention by the Australian Federal Government. Domestic consumption of natural gas is forecast to come under pressure as households transition to more energy-efficient technologies. In the meantime, increased demand from gas-fired power stations will replace lost demand over the medium term, as gas-fired power is expected to provide firming capacity as the energy transition takes shape. Overall, industry revenue is forecast to fall at an annualised 4.8% over the five years through 2029-30, to $12.7 billion.

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What's included in this industry analysis

IBISWorld's research coverage on the Gas Supply industry in Australia includes market sizing, forecasting, data and analysis from 2014-2029. The most recent publication was released October 2024.

About this industry

What's this industry report about?

The Gas Supply industry in Australia operates under the ANZSIC industry code D2700. Industry firms retail gas to consumers and businesses. Industry participants also distribute natural gas to end users via a system of pipes, known as gas distribution mains. However, regulation prevents firms from both retailing and distributing gas. The industry excludes the operation of gas transmission pipelines, which transport gas from gas production facilities to gas distribution mains. Related terms covered in the Gas Supply industry in Australia include distribution network, natural gas, transmission pipelines and lng.

What's included in this industry?

Products and services covered in Gas Supply industry in Australia include Gas retailing and Gas distribution.

What companies are included in this industry?

Companies covered in the Gas Supply industry in Australia include AGL Energy, Origin Energy and EnergyAustralia.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Gas Supply industry in Australia.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Gas Supply industry in Australia.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Gas Supply industry in Australia.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Gas Supply industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Gas Supply industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Gas Supply industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Gas Supply industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Gas Supply industry in Australia.

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Frequently Asked Questions

What is the market size of the Gas Supply industry in Australia in 2026?

The market size of the Gas Supply industry in Australia is $16.3bn in 2026.

How many businesses are there in the Gas Supply industry in Australia in 2024?

There are 181 businesses in the Gas Supply industry in Australia, which has declined at a CAGR of 2.9 % between 2019 and 2024.

How may import tariffs affect the Gas Supply industry in Australia?

The Gas Supply industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Gas Supply industry in Australia?

The Gas Supply industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Gas Supply industry in Australia grown or declined over the past 5 years?

The market size of the Gas Supply industry in Australia has been growing at a CAGR of 2.2 % between 2019 and 2024.

What is the forecast growth of the Gas Supply industry in Australia over the next 5 years?

Over the next five years, the Gas Supply industry in Australia is expected to decline.

What are the biggest companies in the Gas Supply industry in Australia?

The biggest companies operating in the Gas Supply industry in Australia are AGL Energy, Origin Energy and EnergyAustralia

What does the Gas Supply industry in Australia include?

Gas distribution and Gas retailing are part of the Gas Supply industry in Australia.

Which companies have the highest market share in the Gas Supply industry in Australia?

The company holding the most market share in the Gas Supply industry in Australia is AGL Energy.

How competitive is the Gas Supply industry in Australia?

The level of competition is moderate and increasing in the Gas Supply industry in Australia.

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