The Victorian Government in Australia has proposed new gas market reforms to bring down prices, protect jobs and preserve the supply of gas to Victorian homes and businesses.
The new gas export mechanism intends to place an upper limit on the total allowable gas that can be exported, a measure aimed at protecting domestic needs.
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Local businesses are finding it challenging to procure gas, as nearly two-thirds of the gas produced is exported to overseas markets. As a result, pressure is mounting on local businesses, jobs and household gas bills, according to the government.
Victoria Minister for energy, environment and climate change Lily D’Ambrosio said: “There is something seriously wrong when you can buy Australian gas in Japan for a cheaper price than what businesses in Victoria are being charged, this needs to change.”
“The Commonwealth’s proposed reforms don’t go far enough, soon enough. We need immediate action, that’s what our plan delivers.”
Meanwhile, the Australian Government is also planning to put LNG export under control.
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By GlobalDataVictoria Minister for industry and employment Wade Noonan said: “Rising gas prices are hurting Victorian manufacturers and putting jobs at risk, that’s why we need a tough new cap on exports.”
The proposal also seeks to provide temporary subsidies and co-investment for energy efficiency measures and give greater powers and market oversight to the Australian Competition and Consumer Commission.
The government is also evaluating the development of an LNG import terminal in Victoria.
The Victorian Budget was presented last month and declared a $90m support fund to protect the interests of local businesses and manufacturers from the pressures of a volatile gas market.
