Top gas exporter Australia caps prices despite industry protest

Bloomberg

Australia passed a law to cap domestic prices of natural gas to limit the impact of soaring global costs on local power bills, ignoring protests from the nation’s powerful energy exporters.
At a special sitting, Australia’s parliament passed legislation to cap wholesale gas prices for 12 months. The government also agreed with state and territory leaders to impose a price ceiling on coal, which would see producers compensated for any operating costs that push their rates above the threshold.
The move follows a tumultuous year for Australia’s energy policy, with center-left Labour government facing an unprecedented squeeze shortly after its election in May as exporters sought to tap high international prices following Russia’s invasion of Ukraine. Liquefied natural gas producers have been vocal in their opposition to the government’s plans, especially a clause that would make currently voluntary agreements mandatory.
The intervention means that domestic gas prices would be capped at A$12 a gigajoule ($8.7 a million British thermal units), above historic local rates but less than a third of international benchmarks, while coal supply would be limited at A$125 ($86) a ton. The legislation will also provide additional energy bill relief for low- and middle-income households through payments to the states and territories.
The government has so far ignored calls to impose a windfall tax on energy companies.