Energy company AGL claimed that Australian manufacturers will be short of gas this winter unless LNG from Queensland is reserved for local industry, according to the AFR.
The advice comes as some Australian manufacturers worry that the gas shortage is much worse than first feared.
AGL head of wholesale markets Richard Wrightson that he did not expect Australian industry to pull through if it is a very cold winter. Wrightson also said that AGL does not actually have any contracted gas left it in its portfolio.
However, Australia’s resource minister Matt Canavan said that any changing of the rules or gas reservation would deter future investment and that he is confident more gas will be sold locally.
“It makes no sense to me that they would put gas on a ship, ship it to Asia, to earn less than if they turned around and flowed it south,” Canavan said.
However, Wrightson said that AGL had tried to persuade LNG companies to sell more gas locally and failed.
Both the Australian manufacturing union and a Nationals member of parliament have called for gas reservation to supply cheap gas to local industry.