Fact: Every single gas-exporting nation on earth has laws to ensure it gets access to its own gas at affordable prices. Except Australia.
What we’re on about:
Australian gas prices are projected to skyrocket. Average gas bills on the east coast could jump by $330 - $540 a year. Wholesale gas prices will continue their rise from $3 to $12 per gigajoule. Billions of dollars of investments are on ice because of looming gas price rises.
Industries that have relied on cheap Australian gas as their competitive advantage, especially manufacturing, will be crippled. 20 per cent of energy-intensive manufacturing operations are projected to shutdown, resulting in some 200,000 job losses.
But if Australia is producing more gas than ever - why the huge price jumps?
Because, unlike any other nation on earth, Australia is allowing a free-for-all on gas exports.
Gas multinationals are extracting Australian gas and exporting it overseas to be sold at the high global price (as much as $18 per gigajoule in Japan), instead of the low local price (traditionally around $3 per gigajoule.)
If the gas giants can attract the global price for Australian gas - why sell it Australians any cheaper?
The solution: gas reservation
Other gas producing nations have gas reservation policies. This means that while multinational companies can still export gas at the high global price, they are required to ‘reserve’ a percentage for sale domestically at a lower price.
This way the gas companies still make massive export profits, while the gas producing nation gets to keep its competitive advantage.
Variations on gas reservation exist across the world. The USA and Canada, for example, have ‘national interest’ tests for their gas exports, which achieve the same end. But Australia is the only gas-rich nation on earth without any restrictions on gas exporters.
We need to change that.
How we can win together:
The only reasons the major gas companies have been able to extract a special deal from Australian politicians is because public awareness is so low.
We believe that by sounding the alarm our politicians will be forced to reopen the issue. They will be forced to do a better job of balancing the interests of Australians against the interests of gas company profits.
The first step is to show them we mean business.
That means building a big, wide coalition. We need your weight in this push.
Please take 10 seconds to add your name and details to the Reserve Our Gas campaign.
We promise not to spam you. We will only contact you about specific, targeted campaign actions we believe can help us win the push for change.
Australia’s gas belongs to Australians. Yes, we can export it. But we should also reserve some for us.