Critics warn of 'Santos-sized loopholes' in gas reservation plan
Industry players say draft gas reservation plans are full of carve-outs that will let a venture many blame for rising prices off the hook.
Critics are raising concerns about potential loopholes in the federal government's draft gas reservation scheme. The policy, which aims to force gas exporters to set aside up to 20% of their production for the domestic market, could largely or totally exempt Santos-led GLNG from the scheme, according to observers. GLNG has been blamed for rising prices on the east coast, as it has exported the equivalent of 20% of eastern Australia's domestic gas demand over the past decade.
Critics argue that the draft policy contains numerous loopholes that advantage GLNG, such as the ability to count contract extensions as existing contracts and provision for take-or-pay deals. The government is expected to release legislation for the scheme in the coming weeks. Paul Farrow, the national secretary of the Australian Workers Union, expressed concern that the draft has been watered down in significant ways that favor GLNG above all others.
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