Australia Considering LNG Export Limits

Australia is considering limiting LNG exports to secure domestic supplies

• Business leaders and regulators warn Australia is facing a domestic gas shortage as wholesale energy prices in the country's biggest electricity market tripled in the three months through June.
• The Australian Competition and Consumer Commission this month urged the government to work with producers to immediately redirect LNG intended for export or risk a major gas shortfall next year.
• The commission said the expected deficit is equivalent to about 10% of domestic demand on the east coast. Australia today extended a mechanism to give priority to domestic demand at competitive terms. The emergency powers have never been used.
• Resources Minister Madeleine King said she intends to ask producers to provide information on their output, planned export volumes and market outlook to determine whether the mechanism is triggered.
• Australia accounted for a fifth of global LNG exports last year with supply mostly headed for Asia although the first cargo in about 6 year is expected in to UK Isle of Grain on Aug 22.