- Shell warns that Australia’s proposed gas export controls could deter investment and worsen shortages rather than lowering consumer prices.
- The opposition plans to divert 10–20% more gas to local markets if elected.
Shell has warned that Australia’s plan to redirect more gas to the domestic market could discourage investment and deepen shortages rather than solve them.
With the May 3 general election approaching, energy policy has taken centre stage. The Liberal-National coalition has pledged to lower power costs and prevent an East Coast gas shortage by forcing exporters to set aside more supply for domestic use.
However, Shell Australia Chairperson Cecile Wake has argued that export controls will not increase supply and could create more problems.
Speaking at a gas conference in Sydney, Wake criticised the plan, saying that simply redistributing gas instead of increasing production would hurt the industry.
“The fact that export controls are the easiest tool for the federal government to address the southern gas shortage does not mean it should rely on them,” she said. “This approach does not expand supply. Instead, it reshuffles it while discouraging investment and worsening the problem.”
Despite producing more gas than it needs, Australia exports most of its supply under long-term contracts. The country’s competition regulator has warned that the east coast could face a gas shortage by 2027.
Opposition leader Peter Dutton has promised that, if elected, his party will force exporters to divert 10–20% more gas to the local market. The plan would not affect existing contracts but require uncontracted gas—currently sold on global spot markets—to be redirected domestically. Companies that fail to comply would face penalties.
The ruling Labor Party has focused on renewable energy. Still, Prime Minister Anthony Albanese has said he is willing to use emergency powers to divert gas to the local market in case of a shortfall.
Wake criticised the political divide over energy policy and urged the government to focus on incentives that boost investment rather than restrictions. “Instead of redistributing an ever-diminishing pie, we should focus on making the pie bigger,” she said.