Australian Energy Producers conference: Sector promises more oil and gas as Middle East disruption drags on
But it doesn’t rule out taking more dramatic steps to ensure domestic supply if Australia’s outlook worsens, amid ongoing disruptions from the Middle East conflict.
The Albanese Government has promised to “get the details right” with its contentious new gas reservation policy, as Australia’s energy production sector remains on edge about the proposal.
LNG exporters will be forced to quarantine 20 per cent of their gas exports from July 1, 2027 for the domestic market, under the plan unveiled in last week’s Federal Budget.
Australian Energy Producers chief executive Samantha McCulloch told the peak body for the sector’s annual conference in Adelaide on Tuesday that it was critical to get the design right and “avoid unintended consequences” of previous market interventions.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.“At this critical crossroads for Australia’s energy future, we cannot lose sight of what needs to be done to deliver the next generation of nation-building energy projects,” Ms McCulloch said.
“A key to this will be getting the design of the gas reservation scheme right.”
Assistant Resources Minister Anthony Chisholm said consultation papers would be released in coming days, acknowledging “many in this room have questions”.
“And following that, industry roundtables as we get the details right,” Senator Chisholm said.
He said that on Friday, Resources Minister Madeleine King was advised that Australia’s east coast market had sufficient supply to meet demand to the third quarter of this year.
That meant no further action would be required under the Australian Domestic Gas Security Mechanism, a “measure of last resort” limiting LNG exports.
But Senator Chilsholm warned: “If Australia’s outlook changes, the Albanese Government will not hesitate to take the necessary action in the national interest to secure its domestic supply for Australian consumers”.
