Oz Labor Proposes Curb on LNG Exports

Australian Labor Party, which is in opposition at present, will put in tighter controls on LNG exports to rein in rising domestic gas prices and ease supply shortage if it wins the elections, Bill Shorten the Labor leader said September 3 in Brisbane.

“Labor today is announcing a policy which will see the price of gas being more affordable for Australia's businesses and Australian manufacturing, and we'll be able to do this, and also see that we can help encourage greater certainty and investment in the gas industry going forward. More affordable prices is what our policy today is aimed to achieve – saving Australian jobs and keeping Australian manufacturing in Australia,” Shorten said.

Australian LNG exports have been soaring, while east coast markets have been experiencing shortage and rising prices. This has triggered a call for severe restrictions on Australian LNG exports. Some companies have even proposed to build LNG import terminals on the east coast. AGL, ExxonMobil, Mitsubishi and Squadron Energy all have proposals on the table. 

“We want to make sure Australian gas is developed for Australian interest first and then we export the rest and still make a lot of money in export. But our plan is very straightforward: we want to make sure that gas, Australian gas, is available at reasonable prices for Australian companies and Australian jobs first, and then we export the rest,” Shorten added. “Labor's policy to have a permanent export control trigger, a national interest test and greater strength for the ACCC, will make sure that Australian gas is available at reasonable prices for Australian interests first.” 

Jason Clare, shadow minister for resources and northern Australia said that the Labor Party if elected will strengthen the gas trigger that the government put into place last year. The government had managed to get an assurance from east coast LNG exporters that enough gas will be supplied to bridge the shortfall.

“When the government put that gas trigger into place, we backed it, we supported the government. We actually urged them to pull the trigger but they failed to do that. What we're announcing today is that we'll expand and strengthen that gas trigger. The gas trigger that the government put into place last year is temporary and it expires in 2023. What we are saying today is, let's make that power that the Commonwealth has, permanent – a permanent gas trigger,” Clare said. 

Labor wants to expand the scope of the trigger so that export controls can be put into place, not just if there's a lack of gas available to companies but if gas is being offered to them at a price that they can't afford. Clare further said that Labor will give the Australian Competition and Consumer Commission (ACCC) power to set a benchmark price. “If companies are being offered prices that are well above that, we can put into place export controls to make sure that Australian companies get access to the affordable gas they need to do the jobs that they do and create jobs for ordinary working Australians,” Clare said.