Media release: Singapore deal highlights strategic importance of LNG exports for Australia’s energy security

Today’s joint statement between Australia and Singapore on fuel security is a timely reminder that Australia’s natural gas exports play an essential role in Australia and the region’s energy security, through the mutual assurance of trade in gas, liquid fuels, and other critical products.

Australian Energy Producers Chief Executive Samantha McCulloch said the joint statement highlights the strategic importance of Australia’s gas industry to Australia’s energy security and economic strength, and why imposing a massive new tax on the gas industry at a time of unprecedented global volatility would undermine regional energy stability.

“This agreement shows how critical Australian gas and LNG are to regional energy security — and why we must not undermine investment through higher taxes or policy uncertainty,” Ms McCulloch said.

“At a time when nations are considering restricting fuel exports, Australia’s role as a stable and trusted energy supplier has never been more important.

“Prime Minister Anthony Albanese and his Singaporean counterpart Lawrence Wong today agreed to support the flow of liquid fuels, LNG other essential goods between our countries.

Ms McCulloch said LNG exports support key partners while strengthening Australia’s access to global energy markets.

“The fact Australia can use LNG to help secure fuel imports shows just how strategically important Australia’s gas resources are.

“Higher taxes on the gas industry will deter new supply, increase the risk of shortfalls, and ultimately drive-up energy prices. They will leave Australia more exposed in the event of future energy shocks.

“You cannot strengthen energy security and regional stability while actively undermining investment in the very industry that delivers it. These proposals would cause lasting damage to Australia’s reputation as a reliable energy partner.”

The Prime Minister should immediate rule out imposing a massive, punitive tax on Australia’s third largest export industry.

Earlier today at the National Press Club, International Energy Agency Executive Director Dr Fatih Birol cautioned against abrupt changes to tax settings for the gas industry, warning countries like Australia to be “very careful” about sudden shifts that could undermine investment confidence.

He said policymakers should carefully consider what such changes mean for future investment decisions.