Australia’s LNG export success is waning as structural imbalances deepen. Most production is in the west, far from high-demand southeast regions. Exploration decline since 2015 leads to plateaued gas output, risking a future decline. Regulatory obstacles and environmental resistance hinder new investments, leaving the gas outlook fragile.

East coast gas demand rises while local supply struggles to keep pace, leading to price spikes and supply constraints. Government measures aim to protect consumers, but regulatory hurdles and environmental opposition hinder new projects, tightening supply. Electricity system faces stress amid ageing coal-fire power stations and gas shortages.

Investor confidence in Australia’s gas sector wavers due to regulatory risks and environmental pressures. Stagnation looms without major investments, jeopardizing domestic and international commitments. Potential LNG imports may be necessary to stabilize the market. Expanding local supply remains a strategic solution, but slow approvals and heavy regulations hinder progress.

Australia faces a critical phase in its gas system with declining exploration, regulatory hurdles, and infrastructure challenges. The country must decide to reset its approach to prevent deeper shortages, higher prices, and eroding investor confidence. Without significant policy shifts, the future of Australia’s gas market remains vulnerable.

Read more at Yahoo Finance: A Global LNG Power Facing Local Shortages