It surprised many Australians when the Coalition announced a plan straight from the progressive side of politics: force large gas companies to reserve gas for domestic use – at a lower cost than they could sell it for overseas.
As a populist move during a cost-of-living election, it’s a good one. Australia’s gas producers sell 70% of gas extracted on the east coast overseas under long-term contracts, even as southeastern states such as Victoria face possible gas shortages. Western Australia has long had an effective policy requiring up to 15% of offshore gas to be reserved for domestic use.
