Australia aims to limit gas exports to lower domestic prices

The world’s third-largest LNG producer, Australia plans to limit its gas exports in order to reduce prices on its domestic market. As a result, 20% of Australian production will be reserved for the domestic market. However, the measure will only take effect from January 1, 2027, and will not apply to existing contracts. Currently, 85% of gas production is exported. Since gas fields are located in the north and west of the country while the population is concentrated on the southeastern coast, it is generally more profitable for producers to ship LNG to Asia than to sell it domestically.