Plans to import LNG to Australia reveal the extraordinary failure of consecutive Australian governments to stand up to multinational gas corporations, the Australia Institute has said.
Key Points:
- Australia is one of the biggest exporters of gas in the world, alongside Qatar.
- Around 80% of Australia's gas is exported as liquefied natural gas (LNG).
- Over half (56%) of gas exported from Australia attracts zero royalty payments, effectively giving a public resource to multinational corporations for free.
- Across the country, gas and oil extraction employs just 21,200 workers - less than half of one percent (0.15%) of the 14 million people employed in Australia
"This is pure farce," said Rod Campbell, Research Director at the Australia Institute.
"We produce, burn and export a staggering amount of gas in this country. The gas industry itself is the biggest user of gas in Australia due to the gas it burns to process LNG exports. To suggest there is a shortage is absurd.
"The fact of the matter is that we have allowed multinational gas companies to take us for a ride by giving away our resources tax free and locking us into unsustainable export contracts.
"When facing a genuine resource shortage, the usual first step is to reduce usage, but that is far from what's happening here.
"Heavily subsidised multinational corporations have been driving up the cost of gas in Australia by forcing us to bid against the international market for our own resources.
"Unsurprisingly, the gas industry says the answer to this so-called crisis is to subsidise them into producing more gas, mostly for export.
"Australia Institute research shows that there is no need for gas imports. Supply issues in the southern states can be resolved by reducing demand and managing peak loads in key pipelines.
"The Albanese Government has a choice to make. Will it fight for the interests of regular Australians and the climate or the international gas companies and their shareholders?"
