Gas export control possible despite deal

The deputy prime minister warns he can still pull the trigger and limit what gas is sold overseas if Australian exporters “don’t play ball” and break their promise.

But Barnaby Joyce – who is responsible for export controls – is taking Santos, Origin Energy and Shell at their word and expects them to deliver.

Executives from the three companies have agreed to provide enough gas to the local market in 2018 and 2019 to stave off a shortfall and avert a potential energy crisis on the east coast.

The pledge came at a meeting on Wednesday with Malcolm Turnbull, Energy Minister Josh Frydenberg, Treasurer Scott Morrison and Mr Joyce, following threats to put the brakes on gas exports.

“They’ve got no reason to … tell us porkies,” Mr Joyce told ABC radio.

Reports by the energy regulator and Australian Competition and Consumer Commission this week warned of a shortfall of between 54 and 107 petajoules in the eastern states over the next two years.

The agreement, to be nutted out at another meeting next week, only covers 54 petajoules.
But Mr Joyce said the companies have outlined to the government a “cogent” plan if more gas is needed.

“They’ve said there’s no point of us putting gas on the market that no-one’s going to buy – that would be stupid.”

The companies agreed to report to the Australian Competition and Consumer Commission how much gas is going to market and at what cost, among other things, and could face penalties if they lie.

On top of that remains the government’s ability to restrict gas exports – which Labor believes is the only way to guarantee supply.

“If they’re not playing ball … we’ll pull the trigger,” Mr Joyce said.

“It is the revolver on the hip and if they don’t do it we can enforce it.”

The prime minister has continued to heap pressure on the states – particularly Victoria and NSW – to lift bans on onshore gas developments to ensure long-term supply and lower prices.