Accrual and investment

Question

1. Won't the accrual of ''released'' volumes by LNG exporters exacerbate the crowding out of domestic-only producers, and further harm competition and discourage investment in Australia's gas industry? 2. The consultation paper acknowledges that: ''Accrued volumes create an ongoing liability for the regulated entity to manage.'' Has the government considered the implications of this proposed new regulatory risk for Australia's reputation as a reliable trading partner and predictable destination for international investment? 3. The consultation paper states that: ''Accruing volumes in this way would only be available on the rare occasion that the release valve is made available by the Regulator''. Won't placing such tight export controls on LNG exports irreparably damage Australia's third-largest export industry, put our fuel security at risk, and destroy our hard-won reputation as a stable and trusted trading partner? 4. Is there a cap or limit on the accrual of DSO volumes? Could an exporter hypothetically accrue more than 50 per cent of export volumes as a result of the accrual of unmet DSO volumes?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• BI-064_McDonald_Accrual and investment_DISR.pdf (opens in a new tab)