Australia rules out limiting LNG exports amid domestic shortfall

Australia said Thursday it will not restrict exports of liquefied natural gas after it struck a deal with local gas producers to plug a forecast gap in domestic supply.

"This agreement will not impact supplies to overseas customers, and does not impact existing contracts," Resources Minister Madeleine King said in a televised press conference in Canberra.

In August, the government said it would consider triggering the Australian Domestic Gas Security Mechanism, which would allow Canberra to limit the country's LNG exports in the event of a shortfall to ensure enough gas is available for domestic use.

The agreement with three east coast gas producers means the projected shortfall will be avoided, and the mechanism does not need to be activated at this time, King said.

Global supplies of LNG have been strained in recent months, as Russia's war on Ukraine drags on.

Japan imports some 40 percent of its LNG from Australia, its largest provider.

© Kyodo News