Government open to gas swaps to secure domestic supply
Source: The Guardian
The government may be open to facilitating gas swaps, in which export contracts are fulfilled using overseas gas, to keep more for Australia’s domestic supply.
The resources and northern Australia minister, Matt Canavan, told Radio National on Monday evening it was realistic that the government could help private companies arrange swaps and the idea was part of its consultation with industry.
The proposal was suggested by the Australian Industry Group in a letter on Thursday and has been supported by Labor’s Bill Shorten as part of the solution to a looming gas “crisis” he said threatened Australian jobs.
On Tuesday Labor’s climate change spokesman, Mark Butler, said the government should be open to establishing a national gas reservation policy if all other regulatory measures failed.
Ai Group noted “there are large volumes of gas available on international spot LNG markets” at what it called “modest” prices, but domestic supply was “extremely tight”.
It suggested that commitments made by Australian exporters to overseas customers could be met with gas from outside eastern Australia, freeing up local gas to be sold into the domestic market.
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