The survey concluded that last year’s average gas price of $US4/MMBtu was less than half the regional average.

By comparison, Australia’s leading trade partners China, Japan and South Korea all paid average wholesale gas prices above or just below $10/MMBTU.

Australia also enjoyed lower wholesale gas prices than its two regional LNG export competitors, Malaysia and Indonesia, but was more expensive than Bangladesh, which had the cheapest gas in the Asia Pacific at around $US3/MMBtu.

Australia’s wholesale gas prices are on par with Belarus, Pakistan and Egypt, around $1.MMBtu more than the US or twice that of Canada and well above those of its main LNG rival, Qatar.

Globally, Australia’s average wholesale price ranked 30th in a survey of 54 nations.

Industry lobby group the Australian Petroleum Production and Exploration Association CEO Dr Malcolm Roberts crowed that the result trashed claims that the Queensland LNG plants had pushed up the Australian wholesale price to levels above those paid in Japan or other LNG importing nations.

He said the survey shows that LNG importers were still paying the wholesale prices in 2015

“Australia’s wholesale gas prices are ‘middle of the pack’, a position they have held for many years,” he said.

Dr Roberts said the IGU report supported the recent Australian Competition and Consumer Commission East Coast Gas Inquiry finding that: “…domestic gas prices in the east coast gas market are still generally lower than prices paid by overseas users that purchase LNG.”

However, the full impact on the six new LNG trains is yet to impact the economy, with large amounts of cheaper ramp gas set to evaporate over the next 6-12 months and a supply crunch coming by 2025.

At the same time, major gas contracts are coming up for re-contracting over the next 18 months and gas sellers are expecting to see significantly higher rates.

Dr Roberts again backed the urgent need for policy and regulatory changes to enhance gas supply to help increase supply and keep control on costs.

“Removing unnecessary government restrictions on exploration and development is the most effective way to boost supply, enhance competition and put downward pressure on prices, ensuring Australia retains or improves its global position, while enjoying the benefits that flow to the nation from our LNG exports,” he said.

The IGU survey was the eighth collected by the body and came in a year of lower oil prices, and a great wash of new LNG projects coming on line, approved for construction in the boom years when there was a more robust pricing environment.

The IGU found that the gas glut was affecting gas hub and spot pricing levels and shifts in the wholesale price formation mechanisms are occurring.

The IGU survey aims to establish baseline survey on wholesale price formation mechanisms around the world data for over 100 countries has been collated and analysed.

It found that, in addition to a global gas oversupply, gas-on-gas competition continued to increase its share in 2015 in Europe, spot LNG imports and in India’s domestic pricing.

It now accounts for around 45% of the total consumption, predominantly in North America, Europe, the Former Soviet Union and Latin America

Meanwhile, oil-linked prices also increased its share marginally as the changes in Europe and LNG imports were more than offset by domestic pricing reforms in China. With the advent of US LNG exports and the current surplus of LNG more changes in pricing mechanisms may be to come over the next few years.

That could see Australian LNG exports commanding lower prices over time.