Australia Holds Off on LNG Export Curbs After Supply Assurances

Australia will not impose LNG export restrictions this winter after major exporters assured the government there will be enough gas supply for domestic east coast markets.

(Reuters) — Australia will not impose export restrictions on natural gas during winter after exporters assured the government of sufficient supply for its east coast markets, Resources Minister Madeleine King said on May 15.

BACKGROUND: Australia Mandates LNG Exporters Reserve 20% of Gas for Domestic Market

The government said in April it was considering activating the Australian Domestic Gas Security Mechanism (ADGSM) in the third quarter, which would have required exporters to prioritize local supply.

• "(The government) has now received assurances from exporters that there will be more than enough gas to meet the demand of Australians," King said in a statement.
• She added the government would not hesitate to take further action if there was any change to the supply outlook.
• The ADGSM allows the government to restrict exports from the three east coast liquefied natural gas plants operated by Origin Energy, Shell and Santos.
• In April, the competition watchdog warned wholesale gas supply on the east coast was likely to tighten over winter.