Part 2/6:
The core of the crisis lies in the supply of liquefied natural gas (LNG). Australia, paradoxically one of the top three global exporters of LNG, has been struggling to maintain adequate domestic supply for consumption, particularly on the East Coast. The dependency on international gas markets has resulted in inflated prices for consumers, which have been exacerbated by seasonal shortfalls, particularly in New South Wales and Victoria.
Historically, the gas being allocated for domestic use, which is only about 17% of the overall consumption, is dwarfed by the 82% exported. Despite the AC report highlighting the gravity of the situation, the response from the government has been minimal, with regulations only slightly adjusted to enable potential intervention in exports.