, Australia

Australia mulls over curbing LNG exports to ease local gas prices

How will gas producers take this?

The Australian government plans to introduce LNG export caps on advice from the regulator and market operator, when domestic shortages raise local gas prices, according to Enerdata.

This export cap is expected to ease local prices and soaring energy costs for local industries. Gas producers called instead for lifting onshore gas exploration limits to boost supply and cut prices.

Enerdata added that over the last two years, local gas prices have surged, while three new liquefaction plants have been commissioned. Santos' Gladstone LNG is the sole drawing gas out of the domestic market to meet its export contracts, whereas Queensland Curtis LNG and Australia Pacific LNG claim they are net gas suppliers to the domestic market.

"In March 2017, the Australian Energy Market Operator (AEMO) estimated that Australia could face a gas shortage that would threaten domestic power supply as early as in 2018. The AEMO expected the share of gas production exported as LNG to grow over the next few years, cutting gas volumes for the domestic market by 20% between 2017 and 2021, from 600 PJ down to 478 PJ," Enerdata said.

This story was originally published by Enerdata.

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Cambodia urged to rethink its costly LNG ambitions
It should learn from peers who struggle to fuse the costly fuel into their energy systems.
Power Utility
Trump 2.0 could thump India's solar ambition
Its solar companies may need to set up manufacturing plants in the US to bypass tariffs.