War Impacts Energy Market: Australia to Reserve 20% of Natural Gas Exports for Domestic Use

Middle East War Key News

(Central News Agency, Sydney, 7th, comprehensive foreign report) Australian Energy Minister Chris Bowen stated today that Australia will prevent the risk of energy shortages by mandating major natural gas exporters to reserve one-fifth of their fuel for domestic use.

Australia is one of the world's largest liquefied natural gas (LNG) exporters, and demand for this crucial fuel continues to rise as the Middle East war disrupts global energy markets.

To reduce the impact of "global price volatility" on the domestic market, Australia will require its largest natural gas exporters to set aside 20% of their export production for domestic sales.

Bowen told the media: "We have been mitigating the impact of global energy shocks on Australians by investing in reliable, self-controlled renewable energy, and by ensuring more of the natural gas we need stays at home."

Australia is a significant LNG supplier to many Asian countries. Since the joint attack by the United States and Israel on Iran at the end of February, energy prices in Asia have risen sharply.

According to data from the Asia Natural Gas and Energy Association, approximately 40% of Japan's liquefied natural gas comes from Australia.

To alleviate concerns from trade partners, Bowen emphasized that this policy will not affect existing contracts.

He added: "We have consulted closely with our trade partners to ensure that it is fully understood globally that Australia remains a reliable energy supplier."

Due to its isolated geographical location and only two oil refineries, Australia is highly exposed to disruptions in global fuel supplies.

As Iran nearly blocks the Strait of Hormuz, hindering about one-fifth of global fuel transport, Australia will take action to strengthen fuel supply security.

Australian Prime Minister Anthony Albanese announced yesterday that a national fuel reserve of 1 billion liters will be established to prevent an energy crisis triggered by the Middle East war. (Compiler: Liu Wen-yu) 1150507

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