Australia is attempting to safeguard domestic consumers in the face of rising fuel prices.
One of the largest LNG exporters in the world, Australia, announced on Monday that it might limit its exports to prevent a domestic shortage.
The announcement comes after the country's competition watchdog warned of a shortage and rising costs in 2019 and urged the government to make domestic gas available before exporting any that hasn't been sold under long-term contracts.
According to the Australian Competition and Consumer Commission (ACCC), LNG exporters will probably take more gas off the domestic market than they intend to put on the market. According to Reuters, a shortage equal to about 10% of demand is anticipated.
Australia's Minister for Resources, Madeleine King, stated that before deciding in October, she will engage with LNG exporters and the nation's trading partners.
Australia is one of the biggest LNG exporters in the world, ranking alongside the US and Qatar. China, South Korea, and Japan are the key markets for Australian LNG.
Recent months have seen a worsening of the worldwide gas supply shortage as a result of international sanctions against a major source, Russia. With purchasers in Europe and Asia competing for cargo, LNG is commonly regarded as a replacement for Russian pipeline gas. As a result, LNG prices have increased, encouraging Australian producers to export more than was agreed upon.
Due to malfunctions at its coal-fired power facilities and a cold snap during the current southern hemisphere winter season, Australia has recently experienced an energy crisis. After the energy market operator set a cap on wholesale electricity prices and briefly banned the electricity spot market, the nation was able to avert blackouts in June. New South Wales, the state with the largest population in the nation, asked residents to save energy.