Australia moves to shield gas prices from global spikes

Australia will require liquefied natural gas exporters to reserve 20 percent of their gas supplies for the domestic market under a new policy announced Thursday in Sydney by Energy Minister Chris Bowen, News.Az reports, citing Xinhua.

The new gas reservation policy is scheduled to come into force on July 1, 2027.

Bowen described the initiative as “a carefully calibrated model” designed to ensure that Australia’s national interests remain the priority.

“Australia will always be a reliable supply of energy, but with Australian needs always being catered for,” Bowen said.

Resources Minister Madeleine King said the policy represents a “very important and historic structural shift” for the country’s energy sector.

According to King, the changes could “drive a permanent wedge between international and domestic gas prices,” reducing the impact of global market volatility on Australian consumers.

“Gas market prices will no longer be hostage to international markets,” she stated.

Bowen also said the policy is expected to shield Australia’s domestic gas market from sudden increases in global energy prices and could contribute to lower prices locally.

Australia remains one of the world’s leading exporters of liquefied natural gas and ranked as the world’s third-largest LNG exporter in 2023, according to data from Geoscience Australia.

News.Az 

By Nijat Babayev