Australia may extend a domestic natural gas price cap until at least 2025 as part of regulations that have already sparked protests from the country’s powerful fossil fuel industry and raised concerns among buyers of one of the largest exporters of fuel in the world.
The government proposed extending the A$12 per gigajoule ($7.60 per million British thermal units) cap imposed in December for the east coast market, with a first review expected to start in July 2025, it said. say wednesday in a draft. He plans to finalize the measures for the new fiscal year, which begins on July 1.
The initial cap was only intended to last until the end of 2023 as a means of limiting the rise in energy prices caused by Russia’s invasion of Ukraine. Under the new measures contained in the draft document, small producers who only supply the domestic market would be exempt from the price cap, while larger suppliers can apply for an exemption if they undertake domestic supply commitments.
Both LNG exporters and major buyers such as Japan and China have raised concerns about regulations in the east coast market, which includes three LNG export facilities in Queensland. The other seven plants in the country are not covered.
The measures “will ensure a sufficient supply of Australian gas for Australian users at reasonable prices, give producers the security they need to invest in supply and ensure Australia remains a reliable trading partner by enabling LNG producers to meet their commitments to ‘export,’ said the government. Wednesday.
–With the help of Stephen Stapczynski.
