The Federal Government has decided to impose export restrictions on gas in a bid to ensure there are no domestic shortages.
By July 1, it intends to regulate so that it could force producers to boost supply for Australian users before they are allowed to export.
Resources Minister Matt Canavan said intervening in the market was aimed at protecting thousands of manufacturing jobs threatened by unreliable supply and high prices.
“It is not tenable for Australia to be the world’s largest exporter of LNG [liquefied natural gas] but to have some of the highest prices for gas in the world,” he told AM.
Senator Canavan said it was not the Government’s preferred option, but recent crisis talks with gas producers had failed to prove there would be an adequate domestic supply.
“They have not got us to where we would like to be, we are still not at the point where we believe our manufacturing sector has adequate supplies of gas,” he said.
He said the Government had the power to impose export restrictions on resources, noting it already licenced the overseas sales of uranium.
Prime Minister Malcolm Turnbull said the Government’s announcement would “ensure gas prices in Australia are lower and fairly reflect international export prices”.
“Gas companies are aware they operate with a social licence from the Australian people,” Mr Turnbull said.
“They cannot expect to maintain that licence if Australians are short-changed because of excessive exports.”
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