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Australia Signals Possible LNG Export Limits to Protect Winter Gas Supply

The move opens a 30‑day window for exporters to boost local supply before a mid‑May decision.

Overview

  • Resources Minister Madeleine King issued a formal notice under the Australian Domestic Gas Security Mechanism that warns exporters they may face limits unless more gas is offered to the local market.
  • Exporters have 30 days to propose extra domestic supply for July to September, with a ruling on whether to curb LNG shipments due by mid‑May.
  • The ACCC projects a potential east‑coast shortfall of up to 12 petajoules in the third quarter, including a possible 10 petajoule gap in July, which could require more gas to be piped south from Queensland.
  • The government says there is no current shortage and calls the notice a precaution, while the ACCC and the market operator AEMO continue to track supply and prices.
  • Global disruptions that have lifted gas prices increase the lure of exports, and with a prior industry supply pact now expired, producers such as Santos face pressure as officials weigh using last‑resort powers to prioritize households and factories.