Australia will require liquefied natural gas exporters to set aside 20% of new supply for the domestic market, as the government moves to curb prices and avert shortages on the populous east coast.
The new system will apply to prospective contracts and the spot market from July 1, 2027, Energy Minister Chris Bowen and Resources Minister Madeleine King said in Sydney on Thursday.
Australia was the world's third-largest LNG shipper last year, but its 10 export terminals are all located in western or northern areas. Gas fields on the east coast are rapidly depleting, while plans to develop new projects have run into intense opposition.
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| The policy will mainly affect three major projects in Queensland - Australia Pacific LNG, Gladstone LNG and QCLNG - and shareholders including Conocophillips, Shell Plc, Origin Energy Ltd. and Santos Ltd. It follows the government's decision to drop plans for new taxes on gas exports in next week's budget, despite pressure from voters and activists. ALSO READ: Market Manipulation? $920 Million Crude Oil Shorts Placed Before US-Iran Deal News: Report |
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