Australia is one of the world’s top liquefied natural gas (LNG) exporters. But due to the natural gas crisis in the country, uncertainty has arisen about exports. As a result, the country’s government has said that LNG exports may be reduced to resolve the crisis. Analysts said the ongoing gas crisis is expected to increase, and a significant shortage is expected. If the situation is not managed, fuel prices may climb to record highs next year. The article is about Potential Curb on Australian LNG Exports.
Meanwhile, the Australian Competition and Consumer Commission says that the gas crisis has been created again due to excessive exports. As a result, the government must limit exports to maintain standard supply in the local market. The Australian Competition and Consumer Commission responded after Australia’s energy market regulator recently decided to launch the Supply Guarantee Mechanism.
When a similar gas crisis occurred a few years ago, the Australian government adopted this mechanism to control the situation. It aims to ensure adequate supply to the local market and upstream exports. Under the mechanism, the Australian government can transfer LNG cargoes intended for export to offshore projects located in the country’s north f it so chooses.
Minerals Minister Madeleine King said Australia is a reliable and long-term energy source and minerals. She added, “Our country is a significant supplier of LNG to North Asian countries. We remain committed to continuing to help protect global energy security. We are currently working with international partners to address global challenges.”
The Australian Competition and Consumer Commission said that the country would face severe shortages if LNG producers were allowed to export all their LNG outside the contract. Especially in the east coast region of Australia, the shortage will grow ten times the demand ratio.
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