Major east coast gas users have endorsed Opposition Leader Peter Dutton’s proposal to restrict uncontracted gas exports to global spot markets, describing the initiative as vital for revitalising domestic manufacturing.
Industry group Manufacturing Australia — whose members include BlueScope, CSR and Tomago Aluminium — said the Coalition’s proposed reforms serve the national interest, particularly the aim to reduce gas prices from more than A$14 per gigajoule to below A$10.
“These are necessary and welcome measures. Our message is clear: If we want Australian manufacturing jobs, we need competitively priced gas,” Manufacturing Australia chief executive Ben Eade said.
“Gas prices above $10 per gigajoule are simply untenable in a gas-rich country like Australia, so we congratulate the Opposition for committing to driving the gas price back below this level. If Australia is to retain and grow its manufacturing capabilities, we need to deliver on that objective.”
The organisation highlighted that 87 petajoules of uncontracted gas were exported to global spot markets in 2024, contending that these volumes should have been allocated to domestic users.
“Exporting surplus gas at a time when regulators are forecasting gas shortages, and Australian manufacturers are bearing the brunt of high gas prices and supply uncertainty, simply cannot continue,” Eade said.
Earlier this month, Manufacturing Australia outlined a four-point plan that includes accelerating domestic gas development under appropriate environmental safeguards and implementing a national gas reservation policy, modelled on Western Australia’s framework that reserves 15% of exports for local consumers.