Gas intervention means higher prices, South Korean business lobby says

Government intervention in Australia's gas market threatens a long-term price spike, South Korea's peak business lobby says.

South Korea was Australia's third-biggest overall export market last year, buying $8.1 billion of natural gas. Korea International Trade Association executive vice chairman Jeong Marin-Ki said he feared the Albanese government's intervention in gas markets was triggering an investment strike that would eventually result in the sort of high prices that the policy was trying to avoid.

"They [gas companies] could diminish the production because the price is lower than normal price. So, in the long run, instead of preserving low price, the price could be increased heavily in the long run because in the market the gas shortage could be breaking out," he told Australian reporters in Seoul on Tuesday.

"If the prices are too high, instead of importing Australia they could import from other countries if the price is too high," he said.

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Source: FinancialReview - 🏆 2. / 90 Read more »