A 25 per cent on LNG exports will not affect either the volume or price of LNG exports. Customers therefore have nothing to fear, and the Prime Minister was wrong to stop the tax.

The Prime Minister has let it be known that gas exports will continue to not be taxed. According to him, applying a tax to existing gas contracts would contravene those contracts and damage relations with our Asian customers on whom we depend for petrol, diesel and jet fuels.

He is wrong. The contracts cover the volume of LNG to be shipped. Prices vary substantially from year to year. It is also almost certain that the export tax would not affect either the price or supply of LNG.

According to the Australian Competition and Consumer Commission (ACCC), ‘LNG netback prices based on Asian LNG spot........

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