Sophie Scamps (Mackellar, Independent) Share this | Link to this | Hansard source

My question is to the Minister for Resources. Minister, more than 80 per cent of Australia's gas is used for exports, tripling domestic gas prices and doubling electricity prices. In 2011, Santos's Gladstone LNG joint venture signed export contracts, despite not having sufficient gas reserves, forcing gas to be diverted from the domestic market. Can the minister confirm that this egregious export contract will not be extended beyond 2031 when it expires, as recommended by the ACCC?

Madeleine King (Brand, Australian Labor Party, Minister for Northern Australia) Share this | Link to this | Hansard source

I thank the member for Mackellar for her question and I refer to the contents of that question. As the member would be aware, the government is undertaking a review of the gas market. The intent of this review is to carefully examine how our gas policies work for our economy as part of the all-important energy transition, which I know the member supports, unlike those opposite. The review is examining the effectiveness and coherence of existing regulatory mechanisms to identify improvements, with the aim of creating a long-term, stable regulatory environment. The Minister for Climate Change and Energy and I have been working closely on this for some time. It is nearing its conclusion, and we will speak more about that in due course.

It is helpful, to answer your question, to go through the guiding principles around the review: to secure supply of gas for Australians—a very important objective—to support the transition to net zero; and that Australia will remain a reliable trading partner, supporting energy security in countries like Japan, Singapore, Malaysia and of course the Republic of Korea as well.

In relation to KOGAS and Gladstone LNG, I would note that KOGAS is a co-owner of GLNG and, indeed, has invested a billion dollars into the Queensland economy to build that facility. The arrangements you speak about expire in 2031, and all I can say about those arrangements is that whatever arrangements occur at that time will have to meet the obligations and requirements under Australian law.