The Federal Government is considering a "gas swaps" proposal to free up supply for domestic use, as a major shortage threatens electricity supply and tens of thousands of jobs. Key points:
Vast majority of Australia's gas shipped overseas; blamed for increasing prices domestically
Resources Minister has had 'detailed discussions' with gas companies over gas swaps proposal
Australian Industry Group believes Government should take more interventionist approach to gas market
The vast majority of gas produced in Australia is shipped overseas, which has been blamed for increasing gas prices in Australia.
A number of states have also banned or restricted gas exploration and extraction, further restricting the amount of gas available for domestic use.
The swaps would allow Australian-based producers to use cheap overseas gas to fulfil existing export contracts, which would allow the companies to increase supply to the domestic market.
Resources Minister Matt Canavan has told the ABC he has had "detailed discussions" with gas companies about the proposal, but said it was not the Government's role to negotiate contracts.
The swaps have been proposed by the Australian Industry Group (AiG), which believes the Government must take a more interventionist approach to the gas market.
