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...
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