The Australian Government appears to have been influenced by gas producers to prioritise their profits and foreign customers over reducing domestic energy prices. 

Former Senator Rex Patrick says it is “sickening” that Australian governments continue to serve the interests of the gas cartel rather than those of the Australian public.

The FOI papers, released by the Department of Industry, Science and Resources, show that policymakers were aware of a domestic gas reservation policy's potential to lower prices. 

Western Australia's gas reservation policy, in place since 2006, forces producers to set aside 15 per cent of gas for local use, ensuring long-term, lower-cost supply contracts. 

Former WA Premier Mark McGowan advocated for the policy, calling it “a wonderful initiative” that even the industry now accepts.

But the federal government reportedly rejected similar measures for the East Coast market, where gas prices have been significantly higher than those in Western Australia. 

Gas prices in Queensland surged after 2015, driven by exports, leaving Australian consumers to pay much more for gas than overseas buyers. 

The Australian Domestic Gas Security Mechanism (ADGSM), introduced in 2017, aimed to curb exports in case of local shortages, but it failed to control prices due to the cartel’s tight rein on supply.

According to Mr Patrick, gas companies continued to sell Australian gas to Asia at lower prices than those charged domestically. 

Even as the ADGSM was being reviewed in 2019, the internal documents allegedly show that bureaucrats advised against an East Coast gas reservation scheme, claiming it would threaten investment in gas exploration - despite evidence to the contrary from Western Australia.

Mr Patrick concludes that this deliberate decision-making by both the Coalition and Labor governments has put the interests of foreign energy corporations in Japan and South Korea ahead of Australians. 

These governments have reassured international partners that Australia will remain a “reliable energy partner”, which Patrick interprets as a promise to prioritise exports over reducing domestic energy prices.

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