Australia’s domestic gas supply is being threatened by excessive exports to an already constrained global gas market.
 
The negative net contribution that LNG exporters are forecasted to make to the availability of gas is deeply concerning for Australian Industrial users and the electricity market. With the ACCC predicting withdrawals of 57.6 PJ of gas from the domestic market in 2023, domestic industry will be at a significant disadvantage and will require alternative supplies or face potential closures. The electricity sector will face further uncertainty in excess of the previous lack of reserve warnings encountered during the winter cold snap in 2022.
 
The prospect of additional production of natural gas being exported without regard for domestic energy security will place significant pressure on any potential economic recovery. The continued failure of policy mechanisms which have been in place since the commencement of LNG exports needs to be rapidly adapted to ensure the security of supply of energy to an already fragile economy.