Policy & Regulation

Eastern Aus policy debacle rocks LNG export industry

The gas reservation policy in eastern Australia came as an unpleasant surprise for LNG exporters The gas reservation policy in eastern Australia came as an unpleasant surprise for LNG exporters.
By Sally Bogle 21 December 2017 0 28873
An LNG ship arriving at GLNG in Queensland. (Santos)

The introduction of a gas reservation policy in Australia’s eastern states has proven a nasty shock for LNG exporters in the region.

The so-called Australian Domestic Gas Security Mechanism (ADGSM) gives the federal government the power to order exporters operating Queensland’s three LNG facilities – APLNG, GLNG and QCLNG – to redirect some of the gas destined for export to the local market at times when a domestic supply shortfall threatens. 

The policy was introduced in anticipation of strong demand around December, January and February, when the...