Gas majors including Shell and Chevron warned Australia against introducing a windfall tax on gas exporters, saying it would deter investment and undermine energy security as LNG prices surge amid disruption caused
Gas majors including Shell and Chevron warned Australia against introducing a windfall tax on gas exporters, saying it would deter investment and undermine energy security as LNG prices surge amid disruption caused by the Iran war.
Australia became the world's second-largest LNG supplier after Iranian strikes forced Qatar to halt production, with its export revenue set to surge due to lower supply caused by the conflict.
Canberra is weighing options to capitalise on the higher prices, with Prime Minister Anthony Albanese asking the Treasury Department to model a tax on LNG exports and suggest reforms to the Petroleum Resources Rent Tax (PRRT). A suggested windfall tax could exceed 25%.
Cecile Wake, chair of Shell Australia, which exports gas from the Queensland Curtis LNG project and operates the floating LNG project Prelude off northern Australia, warned against "short-term fixes" in response to the energy crisis.
"At times like this, there is increased risk that strong and stable policy settings are sidelined by short‑term measures or populist rhetoric," she told the Australian Domestic Gas Outlook conference on Tuesday.
Potential Impact of Proposed Policies
The proposed policies would "erode project values and render many of Australia's future growth opportunities
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