Major gas companies like Shell and Chevron have cautioned Australia against implementing a windfall tax on LNG exports, arguing it could deter investments and jeopardize energy security amid rising LNG prices due to disruptions from the Iran conflict. As Australia steps in as the world’s second-largest LNG supplier following production halts in Qatar, the government is considering ways to leverage these higher prices. Prime Minister Anthony Albanese has tasked the Treasury with modeling a potential tax on LNG exports, which could exceed 25%.
Cecile Wake, chair of Shell Australia, emphasized the risks of adopting short-term solutions during the energy crisis, warning that such measures could undermine stable policy settings. She stated that proposed policies might diminish project values and make future growth opportunities less competitive globally. Meanwhile, Chevron criticized the windfall tax as a “knee-jerk” reaction, stressing the need for policies that encourage investment rather than hinder it.
Despite exporting A$65 billion ($44.5 billion) in LNG last year, gas producers face scrutiny over low tax payments. Santos CEO Kevin Gallagher defended the industry, highlighting that LNG exports contribute significantly to state royalties. Overall, industry leaders are advocating for a policy framework that promotes investment in gas production to secure supply.
