LNG is an important fuel item used in power generation, factories and cooking in households. Australia, one of the largest LNG exporters, is planning to reduce that very important LNG exports. RT Media reports.
The crisis is reported to be a result of the ongoing global market volatility which is due to various recent wars in different countries and zones. This is certainly not good news for various energy import dependent countries. Lack of LNG will increase the economic crisis there.
The plan comes after having warning of gas shortages and price hikes next year by Australia's Competition Watchdog. The organization called on the Australian government to ensure domestic supply first.
The country's LNG exporting companies may extract more gas from the domestic market than they plan to supply to other countries. Australia's gas deficit is likely to reach 10 percent. This was reported by the Australian Competition and Consumer Commission.
Australia's Energy Minister Madeleine King said she would consult with LNG exporters and the country's LNG trading partners before making such a decision in October.
The main importers of Australian LNG are China, South Korea and Japan. And Australia is one of the world's largest Liquefied natural gas (LNG) exporting countries, along with the United States and Qatar.
Countries dependent on Australia are concerned to be in trouble if the LNG exports are restricted like this. Because of the war, some countries have changed the rules of exporting oil and gas that leads the third world countries to bankrupt situation.