Australian Labor Party Plans to Restrict LNG Exports if Elected

If elected to power Australian Labor party will make sure there is a greater control over country’s gas exports.

In an opinion piece published in Australian Financial Review on Wednesday, Chris Bowen, the shadow Treasurer said Labor would follow the lead of other gas-rich nations, like the US and Canada, and introduce a Domestic Gas National Interest Test for new or significantly expanded natural gas export facilities.

An independent board, appointed by the Treasurer, would assess the impact a new gas project might have on the national interest. The government would then be able to assess whether any restrictions should be applied to the project, he said.

This might include a conditional approval, under which some of the gas could be slated for LNG export, while some could be reserved for domestic use.

“The important thing is under a Shorten Labor government, Australia will have a strategy to ensure exporting natural gas is in the interests of all Australians, whether LNG exporters, local manufacturing businesses or households,” Bowen wrote with Scott McDine, national secretary of the Australian Workers’ Union.

He emphasised that soaring demand for gas in Asia could lead to rise in prices. With Australia exporting huge amounts of LNG, Bowen said, domestic households and businesses could suffer severe consequences.

“The multinationals extracting our gas are obviously keen to sell it to the highest bidder – regardless of whether that bidder is domestic or foreign,” Bowen said.

Australia goes to poll on July 2. Prime Minister Malcolm Turnbull will be taking on union-backed Labor leader Bill Shorten.