Credit Suisse: ban QLD gas exports to ring-fence local supply

The Gladstone LNG gas project (Field Energy Services)

The Gladstone LNG gas project (Field Energy Services)

Credit Suisse has suggested a partial ban on liquid natural gas (LNG) exports from Queensland to boost local industry’s supply of gas, according to the AFR. 

The bank’s analysts believe that the best way to boost Australian industry’s access gas is to limit how much LNG is exported to Asia from Santos’ Gladstone Curtis Island facility. They claim that limiting exports from the facility may potentially save thousands of Australian manufacturing jobs. 

Credit Suisse analyst Mark Samter’s team said that something will have to give in the Australian gas market, with the whole country facing critical undersupply.

“If an industrial user can’t secure gas from even 2019 onwards, they will have to make a decision on the life of their business long before December 31, 2018,” Samter’s team said. 

A key problem in supplying local industry with gas is that under-performance of some gas acreage and state coal gas restrictions have forced some LNG producers to buy gas from third parties to meet export commitments. This gas would usually have been supplied to local industry.