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Australian state puts pressure on gas exporters to boost local supply

Australia’s state energy minister said on Friday that domestic gas production should be prioritized to serve the domestic market, as forecasted for 2023 and 2024.

Comments from ministers for the two most populous states, New South Wales and Victoria, came as Minister for Resources. Madeleine King It is considering whether to limit exports from three east coast liquefied natural gas (LNG) export plants operated by Shell, ConocoPhillips and Santos.

Ministers held a second round of talks with the Minister of National Energy on Friday. Chris Bowen On gas supply and energy market reforms after the June power and gas crisis.

“It is no exaggeration to say that challenges remain. Challenges will continue this year, next year, and in the near future,” Bowen told reporters after the conference.

Ministers will extend powers to Australian energy market operators to line gas reserves in underutilized storage facilities prior to the winter of 2023, and to ensure that the East Coast identifies risks well in advance of the winter season. We agreed to request that a preparedness plan be drawn up.

“We produce enough gas to meet our needs, but the problem is that too much gas is exported at our own expense,” Victoria’s Energy Minister Lily D’Ambrosio said on television. Yes, and that has to change.” media conference.

New South Wales Energy Minister Matt Keane said gas shortage forecasts for 2023 and 2024 will need to be met.Read full text

“And what we need to do is prioritize Australian gas for Australian gas users over companies that profitably export that gas offshore,” Keane said. told the group.

There was no mention in the ministerial communiqué of the proposal from the billionaire Andrew Forrestcompany Squadron Energy is seeking an entity to be set up to line imported LNG as a backup for winter 2023 through a terminal Squadron is building.Read full text

But the Squadron CEO Eva Hanley In a statement, the company said it was “extremely encouraged by today’s landmark policy decisions, particularly the empowerment of Australian energy market operators to source and store gas on the market.”

Ministers also agreed to require that regulators take emission reductions into account when making decisions on energy markets. This is the first change in national energy targets in 15 years.

Bowen said the change would make it clear to global investors that Australia is serious about cutting emissions after more than a decade of policy uncertainty.

($1 = 1.4055 Australian dollars)

(Reuters – Reporting by Sonali Poll/Editing by Mark Potter)

https://www.oedigital.com/news/498698-australian-states-press-for-gas-exporters-to-boost-local-supply Australian state puts pressure on gas exporters to boost local supply

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