Gas Producers in Australia Hope the Proposed Rules Will not Harm Investment

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As the government prepares to unveil the final details of several significant interventions into the domestic gas market, Australian natural gas producers are cautiously optimistic that proposed rules for the sector will not stifle investment.

Mark Abbotsford, executive vice president at Woodside Energy WDS.AX said, “Consultations over powers that would allow government to divert exports to the domestic market are constructive.” 

On Tuesday, Abbotsford, at the Domestic Gas Outlook Conference in Sydney, said, “I do think we can land on a suite of measures that ensure a functioning market and a positive investment climate.”

The Australian gas industry is waiting for the final decision from the country’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), on the proposed new regulations for the sector.

The proposed rules could significantly impact the industry, aiming to increase competition, reduce prices, and ensure supply stability.

The gas producers have expressed concerns that the new regulations may negatively impact investment in the industry.

The Australian Petroleum Production & Exploration Association (APPEA) has urged the Australian Competition and Consumer Commission (ACCC) to carefully consider the potential impact of the new rules on investment, stating that the sector is already struggling due to low prices and a lack of exploration.

However, the Australian Competition and Consumer Commission (ACCC) has stated that the proposed regulations will not harm investment in the sector and will promote greater competition and improve the efficiency of the gas market.

The Australian Competition and Consumer Commission’s (ACCC) final decision is expected to be released later this year, with the new regulations potentially coming into effect in 2024.

The proposed new regulations for the gas industry in Australia have sparked concerns from gas producers, who fear that they may negatively impact investment in the sector.

The industry has expressed cautious optimism following months of warnings claiming a raft of new rules would undermine long-term contracts, stop new investment and alienate trade partners by redirecting exports and setting prices.

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