Gas Reservation Draft Design Framework

Question

1. What is the consequence for an exporter of not meeting the 20%? 2. Do companies have to supply 20% of exports to export outside of contracts? 3. According to the ACCC, GLNG will export 126 PJ of domestic gas in 2026, or 35% of their production. So Santos-GLNG is currently taking gas out of the domestic market - is at minus 35% on its domestic supply obligation - and has to get to plus 20%. Is that correct? 4. What will be the consequence for Santos-GLNG if they fail to meet the reserved volume in July next year? 5. I am concerned the policy is full of Ministerial negotiations and discretion. The scenarios in the consultation document says the Minister may decide to give the LNG exporter an exemption and no fine if they can't meet the obligation. Gas exporters just need to say they have ''no other options''. What is the policy rationale behind this design decision? 6. I understand GLNG has an existing contract ending in 2031, is that correct? 7. The consultation document confirms that the 20% reservation does not include the gas used to power the LNG trains. Just exports, but total feedstock into the LNG facilities. LNG facilities themselves are the biggest gas consumer in Australia - what is the policy rationale behind this design decision?

Answer

Please see the attached answer.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000465.pdf (opens in a new tab)