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Guide to understanding auditing and assurance (PDF)

   

Added on  2021-05-31

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LIQUEFIED NATURAL GAS IN AUSTRALIA 1LIQUEFIED NATURAL GAS IN AUSTRALIABy (Name)Name of the class (course)The Course instructor (Professor)The InstitutionThe City and State locationThe Date

LIQUEFIED NATURAL GAS IN AUSTRALIA 2IntroductionArticle OverviewThe article titled “How Australia is being screwed over its gas” by Charis Chang on 17thMarch 2017 talks about the shortage of gas in the Australian market. According to Chang, Australia has plenty of gas yet there is a shortage in the domestic market. This situation is causedby export of gas to overseas market. The companies involved in the generation of this resource have concentrated on shipping it to international market leaving the home market with insufficient gas. Asia is the biggest beneficiary as it receives approximately three-thirds of gas exports from Australia. The shortage of gas in Australian domestic market has been worsened bythe escalating demand especially in the east coast of Australia. Moreover, the supply of gas in theeast coast of Australia is dominated by only six companies meaning that there is insufficient competition a scenario that results in higher prices for consumers[ CITATION Cha17 \l 1033 ]. The rising prices of gas have caused concern to several stakeholders in Australia. For example, Australian Energy Market Operator has warned that Australia could soon be hit by severe shortage of gas. South Australia, Victoria, and NSW are among the regions that will encounter the shortage of Liquefied Natural Gas (LNG) by the summer of 2018-2019[ CITATION Cha17 \l 1033 ]. The looming gas crisis also made the prime minister to meet the companies involved in the exploration to argue them to supply more gas locally to check on the rising prices. Economic AnalysisThe Demand for Liquefied Natural Gas

LIQUEFIED NATURAL GAS IN AUSTRALIA 3In Australia, the demand for gas, especially in the east coast of the country, has been on the increase in the recent years. Studies show that the surging demand is caused by several factors. Foremost, the incomes of Australians households have been on the increase in the past decade. In economics, we understand that the demand and income move in the same direction, that is, as income rises, the demand for products also increases[ CITATION Man14 \p 32 \l 1033 ]. This is the situation being encountered in Australian gas market. The increase in the number of business relying on gas for their operations has also helped to amplify the demand for this product. Furthermore, the increase in the use of gas is tied to environmental concerns. There are ongoing efforts to persuade individuals to utilize energy that is environmentally friendly to minimize pollution to the environment. Therefore, the Liquefied Natural Gas is providing the solution as an environmentally friendly energy[ CITATION Sae13 \p 54 \l 1033 ].Graph 1: Increase in Demand for liquefied natural gasPriceGasD0DSQeQ0PeP0

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