Gas industry needs to convince government and public on price and supply questions

PRICE BUBBLES: The Australian offshore gas industry has grown enormously in the past decade, to the point where Australia is now the second-largest exporter of LNG in the world. Government and industry need to explain how Australia can have a shortage of the product, and face substantial price increases, for a publicly-owned resource. Picture: Australian Maritime Safety Authority

Resource Minister Madeleine King's swift acceptance of the ACCC's recommendation she take the first step towards invoking a "gas trigger" that would restrict LNG exports from next January sends a strong message to the gas industry that, if it won't voluntarily act in the national interest, it will be compelled to do so.

Australia's gas exporters have been under the microscope since June 6 when the Treasurer asked the ACCC "to ensure the factors influencing prices in gas markets (domestic and export) are made fully transparent and to bring to the government's attention any need for regulatory change to ensure electricity and gas markets function properly for the benefit of all Australians".