• 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 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 18 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 24 hours Bankruptcy in the Industry
  • 2 days The United States produced more crude oil than any nation, at any time.

Australia Extends Domestic Gas Security Deal Until 2030

Australia's new government will extend the so-called domestic gas security mechanism until 2030 in a bid to ensure adequate gas supplies for the domestic market.

Argus reports that the mechanism, which was first introduced in 2017, was about to expire next year, but the Labor government that won the last elections would extend it even though it said the tool had some shortcomings.

The mechanism gives the Australian government the right to divert LNG from three offshore projects in Eastern Australia from the foreign to the domestic market to make sure it is well supplied.

"Australia remains a long-term and reliable supplier of resources and energy, and is a crucial supplier of LNG to our trading partners in north Asia," resources minister Madeleine King said, as quoted by Argus. "We remain committed to contributing to global energy security and working with international partners to address current global challenges."

Australia is currently struggling with a gas and electricity crisis resulting from a colder than usual winter and tighter global LNG supplies that have led to a surge in demand for Australian exports.

Related: New ESG Rules Are Hurting American Farmers

In addition, Quartz noted in a recent report that Australia has a shortage of regasification units, which have gone to Europe as it seeks to wean itself off Russian oil and gas, mostly betting in increased LNG imports, for which it needs to regasification facilities since it is short of LNG import terminals.

The country suffered a gas shortage back in 2017 as well, as it began producing LNG for foreign markets, which led to a surge in demand for gas from abroad. This, in turn, led to a deficit for the commodity at home.

It was as a result of that shortage in 2017 that the Australian domestic gas security mechanism was introduced in a bid to tackle the crisis.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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