Australia sacrificed to preserve Santos
Wow, man, we are pwned. Santos-backed Gladstone LNG has secured a reprieve from the Albanese government’s domestic gas reservation scheme, shielding the Queensland project from the full force of the new rules while honouring existing export contracts. The concession is a victory of sorts for Santos and its international partners, which faced the prospect of The post Australia sacrificed to…
The Gladstone LNG project, backed by Santos, has been granted a reprieve from the Albanese government's domestic gas reservation scheme. This decision allows the Queensland project to avoid the full impact of the new rules while upholding existing export contracts. The concession is seen as a win for Santos and its international partners, who feared having to redirect gas to Australian consumers instead of exporting it to global markets under the original Labor proposal.
However, the new regime will limit the project's flexibility in reselling gas when international LNG prices make additional exports appealing. The government's response has postponed the scheme by six months. The Resources Minister's power to decrease an exporter's obligation under certain circumstances remains unchanged, making the gas lever in the minister's hands functionally the same as before.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
