The Coalition's recent statements committing to "prioritise supply to the domestic market" is welcome recognition that gas exports are hurting Australians.
"The government can achieve this tomorrow by capping exports. It is not complicated," said Richard Denniss, Executive Director at The Australia Institute.
"We have provided certainty of supply and price to the Chinese market for decades, while ripping off customers at home."
Australia is one of the largest exporters of gas in the world. There is no shortage of gas in Australia, as highlighted in the Coalition's recent statements.
Multinational gas export corporations already export 80 per cent of Australia's gas and control almost all of Australia's gas reserves.
Even if every molecule from any new gas project is supplied to the domestic market, they would simply export more gas from gas fields that currently supply the domestic market.
Predominantly foreign-owned gas corporations export 80% of Australia's gas. This includes 70% of gas from the eastern states, 90% of gas on the west coast and almost 100% of gas from the Northern Territory.
These companies receive 56% of the gas they export royalty-free and have never paid Petroleum Resource Rent Tax. Their deliberate strategy of exposing Australian customers to high global gas prices has added tens of billions to their bottom lines at the expense of Australian households and businesses.
"There is a simple, obvious, fool-proof way to ensure a sufficient gas supply and low prices for Australians, and that is to cap exports," said Richard Denniss.
"The more gas they export, the faster Australia's gas reserves run out, the higher the energy bills for Australian households and businesses."
