News: HNG Australian state's move on exports ban could hurt investment, gas producers say

SINGAPORE, Aug 17 (Reuters) - Western Australia's (WA) decision not to consider exemptions from a ban on exports of natural gas from onshore fields will hurt fresh investments, a group of producers said, as the state looks to secure regional supply and rein in prices.

This week's move, essentially an update of a 2020 ban, is the latest setback for the state's natural gas producers, some grappling with warnings of strikes by workers to demand better pay and working conditions.

The decision discouraged producers from bringing new supply into the market, said Caroline Cherry, the Western Australia director of the producer group, the Australian Petroleum Production & Exploration Association (APPEA).

"Western Australia needs to bring more gas supply to the market to power its growing resources sector, and support the southwest electricity system as coal-fired power is phased out," she said in a statement late on Wednesday.

The comment came after the state government said late on Tuesday that it would not consider exemptions to the 2020 policy that bars onshore gas developments on the existing pipeline network to export LNG, including those in the Perth basin.

The decision is not expected to have any immediate impact on shipments or the export markets, however.

Saul Kavonic, an analyst at Credit Suisse, said the decision stood to affect producers in the Perth basin, such as Strike (STX) , Mineral Resources (MIN) and Hancock (HNG) , as they would not be able to export their output.

Prices of liquefied natural gas (LNG) have risen in recent days, driven by supply concerns over the threat of strikes at Australian LNG facilities, after plunging to more than two-year lows from record highs in 2022.

Australian facilities facing the prospect of such strikes together account for about a tenth of the global export market.