Submission: Gas Market Review Consultation

15 August 2025

To: Gas Market Review Team
Re: Gas Market Review consultation

Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to provide input to the Gas Market Review.

IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

As outlined in this submission, IEEFA:

• Considers that the existing instruments have not been effective in addressing the underlying issues in domestic gas markets: a lack of domestic supply due to high spot exports of liquefied natural gas (LNG); and insufficient competition due to market concentration (in the east coast gas market).
• Notes that LNG exporters across Australia continue to export material volumes of spot LNG even while the Australian Energy Market Operator (AEMO) and Australian Competition and Consumer Commission (ACCC) forecast potential gas shortages.
• Recommends implementation of a new export licensing framework for long-term contracts, with licensing criteria set to incentivise domestic supply.
• Recommends implementation of an export tax for spot LNG exports to create stronger incentives for domestic supply, with a spot LNG export cap framework to allow governments to cap or prohibit spot LNG exports in specified circumstances (such as when a gas shortage is forecast for a given period).

Kind regards,

Josh Runciman – Lead Analyst, Australian Gas
Kevin Morrison – Energy Finance Analyst, Australian Gas