Australia’s Gas Reservation Plan Offers No Price-Cut Estimate
Resources Minister Madeleine King says the proposed rules aim to lower gas costs without making future projects unprofitable.
Key takeaways
- The proposed law would require producers to sell some export-bound gas in Australia.
- The government has not said how much wholesale prices might fall.
- The gas industry warns the plan could undermine future investment and supply.
Australia’s proposed gas reservation law would require producers to sell some export-bound gas at home, but Resources Minister Madeleine King did not estimate how much wholesale prices might fall.
The energy regulator would set annual domestic sales at a target of 110% of Australia’s actual needs. The government says the planned oversupply is intended to put downward pressure on prices.
King said the legislation aims to make gas cheaper for heavy industry and energy generation while keeping new projects profitable. The gas industry warned the scheme could make future projects unviable and reduce supply over time.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
