In a statement at the Committee for Economic Development of Australia's Climate and Energy Summit in Melbourne, Chevron Australia Corp Managing Director Balaji Krishnamurthy said the company's LNG exports are constrained, preventing it from meeting the growing demand in Asian markets.
The protracted closure of the Strait of Hormuz has cut about a fifth of global supplies, lifting prices and intensifying competition for spot cargoes across Asia. Australia is one of the world's largest LNG exporters, shipping almost 80 million tons last year, mainly to Japan, China and South Korea.
Krishnamurthy noted that demand for Australian LNG, particularly from Japanese buyers, is outstripping operational supply limits. He said, "The first question from buyers always is, can you do more? And right now, we are facility constrained." He added, "If we are able to sell more, people would absolutely like to buy it."
He also warned that shifting fiscal and tax settings are creating uncertainty for long-dated energy projects and deterring new developments in Australia. "The fiscal and tax settings are just foundational to any country's investment environment, so that absolutely would have to remain stable for us to have an environment to invest in it for the long haul," he said.
Public pressure has been mounting to increase taxes on Australia's LNG exporters, but Prime Minister Anthony Albanese said his government would not "undermine" existing shipments with new taxes, warning that doing so during a global energy crunch would risk investment and fuel security.
Looking ahead, LNG demand remains "very robust," particularly in Southeast Asia and Japan, but shifting fiscal and tax settings are creating uncertainty for long-dated energy projects and deterring new developments in Australia, Krishnamurthy said.
