Insight
Unintended consequences of Australia's gas market intervention
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Australian Government has implemented a gas export restrictions policy, the Australian Domestic Gas Security Mechanism (ADGSM), to try to alleviate public and industry concerns regarding domestic gas supply availability in the eastern states. The policy presents a number of risks for gas producers, LNG buyers, as well as domestic gas buyers. In this opinion piece, Saul Kavonic provides an overview of risks and unintended consequences the policy may pose for stakeholders and policy makers.
Table of contents
- Creating uncertainty, when certainty is needed most
- Unlikely to increase domestic gas supply
- Inviting the wrong kind of commercial behaviour
- The road to price controls
- Queenslanders and tax revenue take a hit
- Sets a precedent putting Australia's future gas security at risk
- Raising Australia's above ground risk profile
- Risk of blackouts could re-emerge
- The upshot
Tables and charts
This report includes the following images and tables:
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Price breakdown of Queensland gas diversions to end userEast coast domestic gas supply
What's included
This report contains:
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