Shell Says Australian LNG Tax Would Deter Gas Investment
Shell warned Australia that a windfall tax on gas exports would deter investment. The firm says the move risks energy security as global LNG prices increase.
Shell plc has warned Australia against the implementation of a windfall tax on liquefied natural gas (LNG) exporters, suggesting that such a move would stifle investment and threaten energy security. This warning comes as global energy markets face significant disruption following the conflict in Iran, which has led to a surge in LNG prices. Australia has recently become the world’s second-largest supplier of LNG after production in Qatar was halted due to military strikes. With export revenues expected to climb as a result of the global supply shortage, the Australian government is reportedly considering new fiscal measures. Prime Minister Anthony Albanese has requested the Treasury department to model a potential tax on LNG exports and explore reforms to the Petroleum Resources Rent Tax (PRRT).
