Australian LNG producers demand policy certainty to capitalise on global supply crisis
As the world’s third-largest exporter, Australia is urged to secure long-term predictability to serve Asia’s growing demand amid Middle East disruptions.
Australia’s liquefied natural gas industry is urging state and federal governments to deliver policy stability and faster project approvals to encourage investment in new oil and gas supply. Speaking at the Australian Energy Producers’ annual Conference and Exhibition, industry executives argued that current global market disruptions present a strategic opportunity for Australia to reinforce its position as a reliable supplier to Asia’s growing gas and LNG markets.
The global LNG crisis has been driven by the loss of Qatar’s supply due to the closure of the Strait of Hormuz and Iranian missile attacks on Qatari infrastructure. Industry leaders stated that tight markets are expected to persist for years, creating a significant demand for alternative sources. Cecile Wake, chair of the Australian Energy Producers, emphasised that increasing new supply is essential to maintaining a well-supplied domestic market while sustaining a thriving export industry.
Wake noted that the crisis has highlighted the strategic advantage of having a robust domestic energy sector. She argued that Australia’s national interest is best served by ensuring an affordable and efficient domestic gas market alongside strong export capabilities. The industry is calling for long-term predictability in taxation, as well as streamlined permitting processes and environmental reviews to provide the clarity needed to incentivise capital investment.
While the federal government has ruled out controls on natural gas exports for the third quarter of 2026, following assurances that the East Coast will not face supply shortages between July and September, producers argue more must be done. New South Wales recently launched its first natural gas exploration tender in ten years at the end of April to address supply concerns linked to the Middle East tensions.
Kevin Gallagher, chief executive of Santos, warned that anticipated debates on gas conservation policies from 2027 and potential tax increases could undermine investment confidence. He described the current period as a critical moment for Australia to cement its credibility as a predictable long-term destination for global capital, noting that prosperity is built over decades rather than three-year political cycles.
