Ineffective Measures: Australia's Gas Crisis Deepens

The Australian government's efforts to enhance domestic gas supply and reduce prices are falling short, according to the Australian Competition and Consumer Commission (ACCC). The commission's recent report highlights that interventions have not brought significant improvements to the market.

Amendments made to the Australian Domestic Gas Security Mechanism and agreements with liquefied natural gas exporters to introduce uncontracted gas into the domestic market have not yielded the desired results. Even though additional gas has been supplied, there remains no significant enhancement in energy security or affordability.

The ACCC points out that changes to the gas supply mechanism in 2023 have reduced incentives for LNG producers, complicating the situation and amplifying the risk of supply shortages in Australia's southern states by 2026, despite the country exporting more gas than it consumes.

(With inputs from agencies.)