• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 hours Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 12 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Australia’s Energy Market Interventions Are Worrying Its Trade Partners

  • Australia is one of the world’s largest liquified natural gas exporters, alongside the United States and Qatar.
  • The country is now attempting to limit gas exports in order to ensure domestic energy security, a move that has its trade partners concerned.
  • The proposal has been called an anti-business and anti-market policy, one that comes with risks for Australia.

Australia’s main energy trade partners and allies are increasingly concerned about the latest proposals for energy market interventions in Australia, which could also undermine new investment plans in Australian natural gas and other energy resources.

Australia is seeking to limit gas supply for exports in order to ensure domestic energy security. The country is a large producer of natural gas and one of the world’s top three LNG exporters alongside the U.S. and Qatar. But Australia also faces a gas crisis on its east coast, and the Labor government of Prime Minister Anthony Albanese is looking at ways to protect domestic supply and avoid shortages and spiking energy bills.  

Earlier this month, the Australian government proposed reforms to the Australian Domestic Gas Security Mechanism (ADGSM), seeking feedback by February 23. Under the reform, the mechanism will be used “to ensure that there is a sufficient supply of natural gas to meet the forecast needs of Australian gas consumers by controlling, if necessary, LNG exports,” the government says in the draft. Australia will protect long-term contracts, it notes.

Japan’s Mitsui warns that a government power to curb LNG exports could have “unintended consequences” on the industry, Mitsui Australia’s Masato Sugahara told Financial Review last week.

Energy companies operating in Australia are already rattled by last year’s cap on domestic gas prices, which has already led to at least one investment project being put on hold.

Commenting on Australia’s latest energy policy interventions, Credit Suisse energy analyst Saul Kavonic told the Financial Times, “There is growing concern that Labor is undermining commitments to trade partners about gas exports. That should be a red flag for the government.”

“This is the most anti-business, anti-market policy Australia has had for some time.”

The imposition of a gas price cap and the proposal that the government has a say in LNG export volumes could be challenged by foreign investors, global law firm White & Case warned last week.

“The imposition of such measures is not without risk for Australia, which is a signatory to several investment treaties where key LNG companies are incorporated,” White & Case says.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News