East coast gas industry blasts Turnbull’s export restrictions

MAJOR gas exporters on the east coast have promised to ensure higher domestic supplies but the industry has slammed the Federal Government’s new export restrictions.

Prime Minister Malcolm Turnbull has announced the Australian Domestic Gas Security mechanism, under which his government will have the power to impose export controls on companies when there is a shortfall of gas supply in the domestic market.

The move would bring local gas prices in line with the global market and protect thou- sands of jobs in gas- dependent manufacturing industries, Mr Turnbull said.

“Gas companies are aware they operate with a social licence from the Australian people. They cannot expect to maintain that licence if Australians are short- changed because of excessive exports,” he told reporters. The government action follows two rounds of meetings between Mr Turnbull, gas producers and the Australian Energy Market Operator.

While Australia is set to overtake Qatar as the world’s largest LNG exporter in 2018, AEMO warned of domestic gas and electricity shortages on the east coast within the next few years.

Energy giant Santos has been accused of contributing to the tight gas supply, given its reliance on third- party supplies to fill up export shipments at its giant Gladstone LNG project in Queensland.