We saw Egypt pull this stunt in the past. Not really the best for investors’ confidence. How will existing agreements be untangled? Will Australia want to pay the price tag that its LNG volumes carry. Currently, those liquefaction plants must be selling at a loss. That’s hard luck but if you change contracts from the outside, you give those exposed new surfaces for throwing a tantrum. And one thing I learned was that once you have sanctioned a project, you don’t want to give lenders and operators any surface for extra complaints. That is when the market is bad of course.
Australia s federal government may seek a national gas reservation policy that could have ramifications for the country s LNG exports at a time when it has become the largest LNG exporter in 2019.