up sinks Wall Street and drives oil sharply higher
Santos CEO Kevin Gallagher is lobbying the Australian government to modify a proposed gas reservation policy, suggesting a 'must-offer' rather than a 'must-sell' requirement. He argues that the current proposal could discourage long-term investment and that Australia does not face an immediate supply crisis.
Why it matters
The debate over gas reservation policies is central to Australia's energy security and economic strategy, balancing domestic needs against lucrative export markets.
Santos boss calls for changes to proposed national gas reservation plan G By Gareth Hutchens
The ABC's energy reporter Daniel Mercer says Kevin Gallagher, the Santos chief executive , used his address at the National Press Club today to call for major changes to the proposed national domestic gas reservation plan.
Under the proposal, the federal government wants gas producers to supply the equivalent of 20 per cent of their exports to the local market every year.
Crucially, the government said exporters should be required to sell that amount of gas and not just simply offer it.
But Gallagher said forcing such a condition could backfire by oversupplying the market in the short-term and scaring away investment in new supplies in the long-term .
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