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Federal govt to impose restrictions on gas exports

The federal government will impose export controls on gas companies to guarantee domestic supply.

The federal government will impose export controls on gas companies to guarantee domestic supply.

The federal government is set to announce new powers that will allow it to impose export controls on gas companies to guarantee domestic supply.

The export restrictions will be decided based on advice from the market operator and regulator about Australia’s forecast needs.

Exporters who take more from the Australian market than they put in will be forced to explain how they will fill the shortfall of domestic gas.

Mr Turnbull has said the government would not prescribe how exporters respond, “giving companies considerable flexibility in finding commercial solutions”.

Mr Turnbull said the “targeted, temporary” restrictions are expected to apply only to east coast exporters and would comply with Australia’s international obligations.

Consultation with industry will take place before the regulations take effect on July 1.

The government is moving to restrict exports after failing to get commitments from the industry that each east coast LNG exporter would put more gas into the domestic market than they took out.

“While good progress has been made, those requirements have not been met,” Mr Turnbull said.

“It is unacceptable for Australia to become the world’s largest exporter of liquefied natural gas, but not have enough domestic supply for Australian households and businesses.

“Australians are entitled to have access to the gas they need at prices they can afford. Thousands of jobs depend on secure, reliable and affordable gas,” he said.

“The government remains committed to LNG exports but not at the expense of Australian interests.”

– AAP

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