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Martin Murray

Australian Exports of LNG

By March 28, 2012

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As much as governments like exporting to help with the trade deficit sometimes too much of a good thing is not so good. In this case Australian business leaders are urging the Australian government to cap the exports of liquified natural gas (LNG) so that there is not a shortage for local manufacturers. Manufacturing Australia is a business coalition of large Australian manufacturing companies that is pressuring the government to adopt policies that will safeguard Australian manufacturing companies.

In 2011, Australia exported about 20 million tonnes of LNG, or about half of what it produced. According to the governments Bureau of Resources and Energy Economics exports are set to triple by 2016. This could lead to a significant rise in the cost of gas, in Australia and other nations including the US, as well as a potential shortage for Australian customers.

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