The Australian Petroleum Production & Exploration Association (APPEA) has claimed that the Australian Domestic Gas Security Mechanism’s (ADGSM) proposed changes to export rules undermines the country’s reputation as a trusted trade partner.
The feedback from APPEA also says that the proposed changes do nothing to tackle the underlying causes of the forecasted domestic gas shortfalls.
APPEA Chief Executive Samantha McCulloch said the importers of Australian natural gas are key investors in the industry, and the economy more broadly.
“The government’s domestic market interventions, including ongoing price regulation, have created a lot of uncertainty and are already impacting new domestic gas supply – the opposite of what the ACCC say is needed,” she said.
APPEA said that prioritising increasing domestic gas supply is in line with the Australian Competition and Consumer Commission’s recent recommendations.
The association has called for more robust and objective procedures for triggering the mechanism, saying that it will maximise notice periods for LNG producers and be less dependent on ministerial discretion.
“The government is squeezing gas supply which independent research has found will increase the pressure on the budgets of households and businesses,” McCulloch said.
“Further, the ADGSM reforms cannot be considered in isolation and must align with the ongoing Heads of Agreement (HoA) and Code of Conduct discussions and processes.”
Subscribe to Energy Today for the latest project and industry news.