Labor gas reservation bill faces industry opposition at inquiry

Summarised from 2 outlets · Updated 23 Oct, 06:50 · Archive

Labor's proposed gas reservation bill, requiring liquefied natural gas exporters to set aside up to 20 per cent of production for domestic markets, faced a parliamentary committee hearing with sparse industry support.

Labor's proposed gas reservation bill faced a parliamentary committee hearing in Canberra on Friday. The policy would require liquefied natural gas exporters to set aside up to 20 per cent of production for the domestic market before they can sell gas overseas. Resources Minister Madeleine King said the reservation would create a modest oversupply in the east coast gas market, bringing down prices.

The proposal faced significant opposition from industry stakeholders. Gas industry lobby group Australian Energy Producers warned that forced sales to the domestic market would harm the industry and ultimately increase prices. Chief executive Samantha McCulloch said she did not support measures forcing producers to sell domestically, particularly if it would create a 10 per cent oversupply. "When that gas is not demanded by the market, it should be free to be exported," Ms McCulloch said.

Greens senator Steph Hodgins-May, though a vocal supporter of a gas export tax, expressed scepticism about the reservation policy's ability to reduce future costs. She characterised the proposal as a distraction from making gas exporters pay more in tax, and noted it would make it easier to open new gas fields and infrastructure. "This is the worst of both worlds," Senator Hodgins-May said.

How it is being reported

• 'Worst of both worlds': sparse support for gas changesLabor's gas reservation has raised more questions than answers for industry groups pushing for numerous changes to limit overreach and to maintain investment.Perth Now · 23 Oct, 06:19
• 'Worst of both worlds': sparse support for gas changesLabor's gas reservation has raised more questions than answers for industry groups pushing for numerous changes to limit overreach and to maintain investment.The West Australian · 23 Oct, 06:18

In this story: Labor · Madeleine King · Steph Hodgins-May · Australian Energy Producers · Samantha McCulloch · Canberra

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