A Tale of Two Sides
The announcement of plans to expand Australia's gas industry has ignited a heated debate. On one side, the government argues that more gas is needed for the energy transition and to rebuild the manufacturing sector. On the other, environmental groups advocate for keeping natural gas in the ground.
However, the real conflict lies in ensuring enough domestic gas supply. Australia's energy-intensive industries are struggling under the weight of exorbitant gas prices. Despite being the world's largest exporter of liquefied natural gas, Australians pay more than consumers in importing countries.
The government and industry have failed to implement adequate safeguards to ensure domestic supply. Exporters committed more gas to exports than they could access, leading to shortages and price hikes. This has had a devastating impact on households, businesses, and the overall economy.
The situation demands a serious overhaul of the east coast gas export industry. The government must prioritize domestic supply over exports, ensuring affordable energy for Australians and fostering industrial growth. This requires a comprehensive policy that includes export controls, reservation policies, and measures to capture windfall profits from gas exports.
Only then can Australia truly benefit from its gas resources, balancing economic growth with environmental responsibility.