One thing that government, LNG exporters and domestic gas producers agree on is that Australia’s domestic gas supply challenge is not only a volume problem – it is a geography problem.Compelling LNG exporters to tip more Queensland gas into a domestic market they are already unable to physically reach in sufficient volumes during southern winter peaks does not solve the underlying constraint. The pipeline linking north to south is already at capacity, and Victorian and NSW demand surges on cold winter days well beyond what that single artery can carry.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Gas reservation scheme should focus on the carrot, not the stick
Underwriting new gas in southern states instead of diverting LNG cargoes to domestic market would provide a cost-efficient solution to the core problem.
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