Shell's Warning: Australia's Energy Policy and Potential Gas Shortage

Shell Australia cautions that Australia's proposal to enforce export gas into the domestic market could deter investments and worsen shortages. As energy becomes a major election issue, debates arise over the right approach to addressing potential gas shortages without discouraging investment.

On Tuesday, Shell issued a warning regarding Australia's proposal to redirect more export gas into the domestic realm, expressing concerns that such a move might deter investments and exacerbate gas shortages. As the general election looms on May 3, energy has become a pivotal campaign issue.

The conservative Liberal-National coalition promises to lower power bills and avert an east coast gas shortage through a gas reservation initiative. However, Shell Australia Chair Cecile Wake criticized the proposed export controls, arguing they do not effectively influence consumer prices.

She emphasized that simply redirecting gas does not increase supply and could hinder investment when combined with price caps and market interventions. The opposition pledges to impose export redirection, while the ruling Labor party focuses on renewables, maintaining emergency powers to address possible shortages.

(With inputs from agencies.)