Australia Faces LNG Imports Amid Gas Shortfall

Australia, one of the world’s largest exporters of LNG, is now preparing to import liquefied natural gas (LNG) to address an impending energy crisis. Port Kembla in New South Wales could see LNG tankers arrive as early as mid-2026 to prevent winter gas shortages in the southern states (AFR). However, securing commercial contracts remains a challenge, potentially requiring government intervention for the project to proceed (Squadron Energy).

After years of warnings about declining domestic gas supply, particularly in Victoria, the situation has become critical. Australia’s southern states lack sufficient pipeline connections to gas-rich regions like Queensland and Western Australia. This disconnect, coupled with heavy reliance on exporting LNG to Asia, has left domestic industries and households vulnerable (ACCC).

Port Kembla, developed by a private energy company, is currently the most advanced LNG import project. Despite the terminal being nearly complete, it has yet to secure firm customer commitments. Gas shortages, especially in Victoria, could hit industrial users first, threatening jobs and raising the price of gas-dependent products like glass and bricks (MacroBusiness).

Broader concerns include the paradox of Australia—a major LNG exporter—needing to import its own resource. While steps are being taken to broaden gas storage and import capabilities, the underlying issues stem from poor policy and delayed infrastructure investment. This highlights the need for a clearer energy strategy as Australia pivots toward more sustainable solutions in parallel with immediate demands for energy security (Department of Industry).