Australia has enough gas to supply the domestic market many times over.
But the gas giants are allowed to export 80% of our gas overseas. That creates fake shortages which, in turn, force domestic prices up.
There is no need to approve any new gas projects in Australia.
Australia Institute research proves this would only make things worse. It would lead to more exports. The manufactured shortages would remain and domestic prices would keep rising. The only winner would be the multinational gas companies.
It's expected Mr Dutton will use tonight's Budget Reply speech to announce a domestic gas reservation scheme targeting new projects in exchange for faster environmental approvals.
A reservation scheme is a good idea, but it must be for existing gas, not new gas. Exports should be capped.
Key points:
- 80% of Australia's gas is exported. Gas export corporations use more gas to operate their export terminals than Australians use for electricity or manufacturing.
- Gas exports have tripled wholesale gas and electricity prices.
- Woodside's North West Shelf export gas project is already draining Western Australia's onshore domestic gas reserves.
- New gas projects are too expensive to reduce gas prices. Australia's low-cost gas is being exported, leaving only high-cost gas.
"Gas prices in eastern Australia have tripled as production has tripled. The definition of insanity is to keep doing the same thing over and over and expecting a different outcome," said Mark Ogge, Principal Advisor at The Australia Institute.
"It's ridiculous to try and solve a gas shortage caused by excessive gas exports by approving even more new gas export projects.
"Woodside's North West Shelf is draining Western Australia's domestic gas reserves and has tripled wholesale gas prices. Extending it for another 50 years would be a disaster.
"The only way to keep Australia's gas for Australians is to cut exports."
