Santos Ditches Domestic Gas for Export Market
Australia's largest energy company, Santos, has announced that it will no longer take gas from the domestic market to ship liquefied natural gas (LNG) to export markets at its Gladstone plant.
The move comes after criticism that the project had driven shortfalls in the domestic market and was a key reason behind the federal government's decision to introduce a domestic gas reservation for Australia's east coast.
Santos CEO Kevin Gallagher said the company would meet its commitments through other means, but warned that the government's planned 20% gas reservation scheme would flood the domestic market, crashing prices and risking future supply.
Gallagher suggested that instead of a 'must-sell' requirement, exporters should be required to offer gas to the domestic market on commercial terms.