Australia Tipped The Big Loser As Energy Giants Push US to Approve Gas Exports

From The Australian

By Matt Chambers

AUSTRALIA and other gas exporting nations stand to lose billions of dollars if large-scale US gas exports are approved, according to oil giant ExxonMobil, which has stepped up pressure on the US government to take the economic benefits for itself.

The calls come as Royal Dutch Shell, who has warned high costs here would crimp or delay investment, revealed the company planned to develop an LNG plant to export shale gas from Savannah, Georgia.

In a submission to the US Energy Department on export of liquefied natural gas, Exxon said limiting exports would mean the US would forego economic benefits forecast by a government commissioned report last month.

“Limited or delayed US exports will allow other producing countries to capitalise on opportunities for international sales of LNG and reap billions of dollars in economic benefits that the US economy would otherwise have received,” Exxon vice-president Theresa Fariello said in the submission.

In a study earlier this month, Deloitte said if US went ahead with exports, Australia would be the biggest loser among LNG exporters because high costs here meant more investment would be displaced.

The push for US exports has come after a shale gas glut in the US depressed domestic prices, making them potentially competitive as a source of LNG for Asia.

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