Aussie gov't to consider domestic gas reserve to lower prices

Source: Xinhua| 2019-08-06 10:35:31|Editor: Yamei
Video PlayerClose

CANBERRA, Aug. 6 (Xinhua) -- The Australian government will consider setting aside gas supplies for domestic use to dive down prices.

Matthew Canavan, the minister for Resources, announced that the government will examine whether a gas reservation scheme in Western Australia can be adopted nationwide.

"Imitation's the best form of flattery and what we're seeking to do is to imitate the best things about what is working in the west and possible apply it to eastern Australia," he said, according to The Australian Broadcasting Corporation on Tuesday.

"That's why we're going to have those discussions in a diligent, considered way in coming months and formulate whether or not we can do something to reserve gas here in eastern Australia for our own use."

In order for such a scheme to be deployed nationwide, the government has warned states that they will have to remove restrictions on gas exploration.

Victoria and New South Wales, Australia's two biggest states by population, have moratoriums on gas exploration and drilling while Tasmania and South Australia also have restrictions.

Prime Minister Scott Morrison is expected to put pressure on the states to lift all restrictions at a meeting of the Council of Australian Governments on Friday.

"Price and supply are inextricably linked," Canavan said.

"To put downward pressure on prices and shore up supply, we need more exploration and production."

Canavan was joined by Angus Taylor, the Minister for Energy, who will bring forward a review of an emergency trigger that can slash export levels of gas, according to The Sydney Morning Herald.

"The reliable, secure and efficient supply of both gas and electricity requires the delivery of enough gas, at an affordable price," Taylor said.