Australia's largest international LNG customer has issued a stark warning against the Labor government's proposed gas reservation scheme, arguing the policy will reduce domestic gas supplies while jeopardizing the country's lucrative export trade with Japan.
The Institute of Energy Economics, Japan, contends that the intervention is counterproductive.
Rather than shoring up energy security for Australian households and industry, the scheme risks constraining the very supply chains needed to maintain competitive export volumes.
The institute highlights that the policy could undermine the multibillion-dollar trade relationship that has been a cornerstone of Australia's energy sector growth.
The criticism comes as global energy markets face shifting demand dynamics.
The International Energy Agency recently downgraded its global oil demand outlook, citing severe damage to crude consumption from ongoing conflicts in the Middle East.