In a world of turmoil, Labor reassures that gas exports are a priority
afr.comResources Minister Madeleine King says fresh outbreaks of conflict overseas underline Australia’s importance as a trusted supplier of gas, as she pushed back on industry concerns that the Albanese government was more focused on destroying demand for gas than stoking investment in new supply.
Geopolitical tensions in the Middle East drove oil prices 4 per cent higher on Monday, putting further pressure on prices for gas, which is typically sold on long-term contracts that are pegged to the oil price.
Resources Minister Madeleine King says world events increase Australia’s importance as a trusted energy partner. Dion Georgopoulos
Santos chief executive Kevin Gallagher said the past two days of violence in Israel and the Gaza Strip should not alone have a major impact on commodity prices, but he said there was a risk to prices if tensions disrupted shipping lanes in the Suez Canal.
The flare up in the Middle East comes after Ms King and Energy Minister Chris Bowen spent the weekend with major Japanese gas customers in Melbourne and assured them Australia would be a reliable supplier.
Ms King will use Tuesday’s second day of The Australian Financial Review Energy & Climate Summit to soothe industry concerns that the government’s Future Gas Strategy is focused on destroying demand for gas at a faster rate than supply falls. These concerns were prompted by the release of a discussion paper linked to the strategy.
“Despite some reports, the discussion paper is wholly cognisant of the need for Australia to consider its trading relationships as we develop a future gas strategy,” she will tell the Summit.
“We must get the balance between gas demand and supply right.”
Ms King will say “recent global events” have increased the
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