Gas giants face export cuts to secure Australian supplies
GAS producers will today be warned they face export restrictions if they fail to provide enough supplies for the domestic market.
The Minister for Resources and Northern Australia, Senator Matt Canavan, will give formal notice to liquefied natural gas producers that he intends to consider whether 2018 will be a gas shortfall year under new laws.
The surprise announcement of the new laws last April - the Australian Domestic Gas Security Mechanism - signalled the Federal Government's intention to monitor gas production to ensure there was enough for domestic consumption.
If shortages become likely, the Government has the legislative right to restrict exports - a direct intervention in the market that has generated strong criticism from some energy industry figures.
"The Australian Government is focused on ensuring domestic gas users have access to a sufficient supply of gas at a reasonable price," Senator Canavan said.