By July 1st, the Federal Government intends to impose restrictions on the export of gas to ensure there are no shortages for Australians, and prices remain reasonable.
The new regulations could mean producers will have to boost supply for Australians before they can export their product.
Prime Minister Malcolm Turnbull said the move 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. They cannot expect to maintain that licence if Australians are short-changed because of excessive exports”, Mr Turnbull said.
Resources Minister Matt Canavan told ABC AM that recent crisis talks with gas producers had failed to prove there would be an adequate domestic supply, and that the intervention would protect manufacturing jobs threatened by the unreliable supply of gas and high prices.
“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,” Senator Canavan said.
“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 added that the expected result of the decision is that gas prices will fall but could not say how much, although he conceded that gas prices in Australia should be the same as Australian gas in Asia, minus the transport costs.
“In the last few months, prices in Asia have been about or just below prices here in Australia and that is not accounting for the shipping costs you incur in exporting gas,” he said.