Dutton's Gas Policy Faces Legal, Economic, and Industry Backlash

The Coalition's proposed gas reservation plan, a key election promise, is under fire for potential legal challenges, lack of detail, and risks to investment and supply stability.

• Peter Dutton's Coalition proposes diverting 10-20% of east coast gas exports to the domestic market, aiming to reduce wholesale gas prices to $10 per gigajoule by year-end.
• Industry leaders and experts criticize the policy for lacking detailed implementation plans and question its feasibility and economic impact.
• Legal analysts warn the policy could expose Australia to lawsuits from foreign investors under trade agreements, potentially burdening taxpayers with compensation costs.
• Energy experts argue the policy may not achieve its price reduction goal due to high transport and production costs and complexities in the supply chain.
• Critics highlight risks of discouraging future gas investments, exacerbating supply issues in southern states, and creating long-term market disruptions.

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The Guardian Australian Broadcasting Corporation The Sydney Morning Herald