• 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
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 1 hour America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Australia May Limit LNG Exports Amid Domestic Gas Shortage

Australia is again facing a domestic gas shortage because of excessive exports, and the Australian Competition and Consumer Commission is warning that the government must impose limits on LNG exports to secure local supply.

This warning follows a decision by the Australian Energy Market Operator to activate a supply guarantee mechanism that was set up in the wake of another looming shortage a few years ago when the Australian government realized it needed a way to ensure that the local market would be well supplied with gas despite rising LNG exports.

Per the mechanism, the Australian government has the right to divert LNG cargos from three offshore projects in Eastern Australia from the foreign to the domestic market to ensure 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."

According to the Australian Competition and Consumer Commission, if LNG producers are allowed to sell all their uncontracted LNG abroad, the east coast of Australia could suffer a shortfall of about a tenth of the forecast gas demand for 2023, the Australian Financial Review reported.

The report noted that demand for natural gas is surging in Australia because of a shift away from coal and not fast enough growth in renewable power generation.

"In the current environment of high international energy prices (including gas and LNG), tight LNG markets, broader supply chain problems, geopolitical instability, inflation and uncertain demand for gas powered generation domestically, we support the Australian government placing greater focus on energy security," the ACCC said in its own report.

By Irina Slav for Oilprice.com

ADVERTISEMENT

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