CANBERRA, April 27 (Xinhua) -- The Australian government will introduce export restrictions on domestically-produced natural gas from July 1 to secure enough gas for the domestic market, Prime Minister Malcolm Turnbull announced Thursday.
Following a series of meetings with gas industry heads aimed at securing domestic supply at a fairer price, Turnbull said that the requirements asked of the gas companies had "not been met," forcing the government to act.
In a statement, Turnbull said the government would introduce the Australia Domestic Gas Security Mechanism, which would have the power to "impose export controls on companies when there is a shortfall of gas supply in the domestic market."
The government will secure domestic gas supply with the introduction of export restrictions to ensure the Australian market has adequate supplies before exports are permitted, Turnbull said.
"The shortage of domestic gas supplies has resulted in dramatically higher prices in Australia - higher than prices paid in the markets to which Australian gas is being exported."
"By ending the shortage, and ensuring the domestic market has adequate supplies, we will ensure gas prices in Australia are lower and fairly reflect international export prices as they should."
"Australians are entitled to have access to the gas they need at prices they can afford."
Resources Minister Matt Canavan said while the action was not the government's preferred course of action, the lack of compliance from the gas companies had forced the intervention.
"It is not tenable for Australia to be the world's largest exporter of liquefied natural gas (LNG) but to have some of the highest prices for gas in the world," Canavan told the Australian Broadcasting Corporation (ABC) on Thursday.
"They have not got us to where we would like to be, we are still not at the point where we believe our manufacturing sector has adequate supplies of gas," he said.
The prime minister said that "full consultation with the industry" would take place before the measures are introduced on July 1.
