Canberra, Dec 22 The Australian government on Monday announced plans for new laws that will require gas exporters to reserve a portion of their supply for the domestic market.
Minister for Climate Change and Energy Chris Bowen said at a press conference in Canberra that the laws, which will be introduced to the federal parliament in 2026, will guarantee Australia's supply of liquefied natural gas (LNG) and put downward pressure on prices.
He said that the legislation will be developed in consultation with the gas industry, international parties and communities and will require exporters to reserve between 15 and 25 per cent of LNG extracted in Australia for the domestic market, reports Xinhua news agency.
"Most Australians think that Australians should have first rights to what's under Australian soil," Bowen said.
Australia is among the world's largest exporters of LNG. Still, a report published on Monday by the Australian Competition and Consumer Commission forecast that the country's south and southeastern states will face a supply shortfall in 2026.
Bowen said that he has briefed his counterparts in Asian nations, including South Korea, Japan and Singapore, who are among the biggest buyers of Australian gas, on the policy.
Earlier in March, the Australia Institute revealed that exporting most of the country's gas has led to higher prices for Australian households and businesses, while applauding the government's recent commitment to prioritise supply to the domestic market.
"The more gas they export, the faster Australia's gas reserves run out, the higher the energy bills for Australian households and businesses," said Richard Denniss, executive director at the Australia Institute.
"There is a simple, obvious, fool-proof way to ensure a sufficient gas supply and low prices for Australians, and that is to cap exports," Denniss said.
Australia is one of the largest exporters of gas in the world. There is no shortage of gas in Australia, as highlighted in the government's recent statements, according to the Australia Institute.
Multinational gas export corporations already export 80 per cent of Australia's gas and control almost all of Australia's gas reserves, it said, adding that gas exports are hurting Australians.
"Predominantly foreign-owned gas corporations export 80 per cent of Australia's gas. This includes 70 per cent of gas from the eastern states, 90 per cent of gas on the west coast and almost 100 per cent of gas from the Northern Territory," the institute said.
"These companies receive 56 per cent of the gas they export royalty-free and have never paid Petroleum Resource Rent Tax," it said.
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