Australian Export Restrictions on Gas

No matter how you look at the Government's decision to impose export restrictions, it will only bode well for LNG. Article below.

The Federal Government has decided to impose export restrictions on gas in a bid to ensure there are no domestic shortages.
By July 1, it intends to regulate so that it could force producers to boost supply for Australian users before they are allowed to export.
Resources Minister Matt Canavan said intervening in the market was aimed at protecting thousands of manufacturing jobs threatened by unreliable supply and high prices.
"It is not tenable for Australia to be the world's largest exporter of LNG [liquefied natural gas] but to have some of the highest prices for gas in the world," he told AM.
Senator Canavan said it was not the Government's preferred option, but recent crisis talks with gas producers had failed to prove there would be an adequate domestic supply.
"They have not got us to where we would like to be, we are still not at the point where we believe our manufacturing sector has adequate supplies of gas," he said.
He said the Government had the power to impose export restrictions on resources, noting it already licenced the overseas sales of uranium.
Prime Minister Malcolm Turnbull said the Government's announcement would "ensure gas prices in Australia are lower and fairly reflect international export prices".
"Gas companies are aware they operate with a social licence from the Australian people," Mr Turnbull said.
"They cannot expect to maintain that licence if Australians are short-changed because of excessive exports."
The gas plan would mean, if a shortage was forecast, gas producers would have to show how they would overcome it.
Their options would include buying gas on the spot market in Asia to fill their export contracts.
"If shortfalls don't emerge, if more gas does come back on to domestic markets, we won't need to activate the mechanism and that would be ideal," he said.
The Government's aim is to bring the price down, but Senator Canavan could not say how much it would fall.
"We don't want to see a situation where gas prices here are higher than they are in the export markets we are exporting to — that is untenable and not an appropriate outcome," he said.
He conceded it has been cheaper to buy Australian gas in Asia than domestically.
"In the last few months, prices in Asia have been about or just below prices here in Australia and that is not accounting for the shipping costs you incur in exporting gas," Senator Canavan said.
He argued Australians should pay the same for their gas as it costs Asia, less the transport costs.
"That is a much more appropriate benchmark," he said.

Source: http://www.abc.net.au/news/2017-04-...s-exports-to-shore-up-domestic-supply/8474432