Australian Opposition Promises Gas Reservation Policy to Lower Energy Prices
Australia’s center-right opposition has pledged to implement a gas reservation policy to keep more natural gas within the country in an effort to lower energy prices, should they win the upcoming federal election expected on May 3, Bloomberg reports.
Liberal Party leader Peter Dutton, in his budget reply speech Thursday night, outlined his plan to address the cost-of-living crisis, which is expected to be a key issue in the election. His strategy includes reducing migration, lowering energy costs, and streamlining government.
Prime Minister Anthony Albanese is widely anticipated to formally announce the 2025 election campaign on Friday morning, with the election date expected to be May 3.
Dutton’s proposed gas policy would redirect between 50 to 100 petajoules of gas intended for export to the domestic market. This would compel gas producers to allocate 10% to 20% more gas to Australia’s densely populated east coast.
The Australian Energy Market Operator has cautioned that southern states and territories could face gas shortages during extreme winter conditions starting in 2028. While Dutton’s proposal represents a substantial shift in policy, the volume of gas he proposes to reserve is a relatively small fraction of the 4,541 petajoules of LNG that Australia exported in the 2022-23 fiscal year.
Australia is a leading global exporter of natural gas, supplying key Asian markets like Japan. Dutton mentioned that he had discussed the policy with the Japanese ambassador prior to its announcement but did not elaborate on the details of their conversation.
Recent opinion polls indicate a close race between Dutton’s Liberal Party and Albanese’s Labor government. The election is taking place against a backdrop of rising price pressures caused by high inflation and a national housing crisis. Albanese’s approval rating has seen slight gains following the Reserve Bank of Australia’s decision to cut interest rates in February.
