Australia's LNG Imports Questioned Amid Domestic Gas Reservation Scheme
Australia's domestic gas reservation scheme has postponed LNG import discussions in southeastern regions by six months, though suppliers maintain that imports are still necessary to meet peak demand. While APA is working on expanding pipeline capacity, the effectiveness of the gas reservation policy remains uncertain, and imported gas may incur higher costs compared to local exports.
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Labor's domestic gas reservation scheme has delayed LNG import discussions in southeastern Australia by six months but does not eliminate the need for gas imports, according to suppliers. They argue that the scheme will increase gas availability in Queensland but will not address peak demand issues in southern states due to full pipeline capacity.
APA is expanding southbound gas pipeline capacity, completing two of five stages, pending customer commitment and approvals. LNG import terminals may be beneficial during a global gas glut, impacting local prices. However, imported gas could cost $2-3Gj above export netback, and the effectiveness of the gas reserve policy remains uncertain.
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