Resource expert questions government's decision to restrict gas exports

Prime Minister Malcolm Turnbull has unveiled plans to impose export controls on gas companies when there's a domestic supply shortage. Dr Tang Kai (Guangdong University of Foreign Studies) is questioning whether new federal government restrictions on gas exports to prevent domestic shortages are merely useful. He suggests Australian LNG producers should increase production and build the new marketing channel to connect Southeast Asia and China.

The federal government will restrict gas exports to prevent domestic shortages. (AAP) Source: Press Association

THE PRIME MINISTER'S PLAN TO DELIVER CHEAPER GAS:

 

* Introduce the Australian Domestic Gas Security Mechanism.

 

* The government will have the power to impose export controls on gas companies when there is a domestic supply shortage.

 

* Resources Minister Matt Canavan will impose the controls based on advice from the regulator and energy market operator.

 

* Companies will not be told how they will have to respond, with options including gas swaps.

 

* It is expected to apply only to east coast exporters and will comply with Australia's international obligations.

 

* It is a temporary measure, with boosting the supply of gas through removing state restrictions on exploration a longer-term solution.

 

* Consultation with industry before the July 1, 2017, start date.

 

Source: Prime Minister Malcolm Turnbull's statement