Turnbull government moves a step closer to export controls for gas producers

The Turnbull government is moving a step closer to slapping export restrictions on liquefied natural gas producers as part of its bid to secure domestic supply and bring down prices.

The LNG plant at Gladstone in Queensland. 

Resources Minister Matt Canavan will give formal notice to LNG producers on Monday that he will use the Australian Domestic Gas Security Mechanism to assess whether 2018 will be a gas "shortfall year”.

Introduced on July 1 as part of the Coalition's energy security push, the mechanism allows the government to intervene in the LNG market to ensure there is sufficient gas supply to meet the needs of Australian consumers. It can do so by requiring those LNG projects which are drawing gas from the domestic market to limit exports or find offsetting sources of new gas.

Read Adam Gartrell’s story in today’s Melbourne Age - “Turnbull government moves a step closer to export controls for gas producers.”