Gas companies will be forced to set aside local supply under major Labor shakeup
Summary
The Australian government will require gas companies to reserve 20% of their export amounts for domestic use starting July 1, 2027. This rule aims to increase gas supply and reduce prices for people and businesses on the east coast.Key Facts
- Gas companies based in Queensland must keep 20% of their export gas for local use.
- This rule applies to new contracts signed after December 22, 2023.
- Companies must prove they met this requirement to get a permit for exporting gas on the overseas spot market.
- The policy aims to create a small extra supply of gas to lower prices and prevent shortages.
- Gas prices in Australia have increased because local markets are linked to international prices since LNG exports began.
- The government will remove the "gas trigger," a rule that previously forced exporters to keep some gas for domestic use.
- Prime Minister Albanese has decided not to introduce a new gas export tax in the upcoming federal budget.
- A parliamentary inquiry on a possible new gas export tax is expected to report its findings soon.
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