Australia's future as an LNG superpower grows cloudier

New government policy prioritizes the domestic market over exports

20170718)Australia volatile LNG superpower

The Santos-operated Gladstone LNG project in Queensland, Australia (Courtesy of Santos)

KAORI TAKAHASHI, Nikkei staff writer

SYDNEY Australia is expected to overtake Qatar as the world's largest exporter of liquefied natural gas in 2019, but a political risk factor is clouding the country's future as an LNG export superpower.

The government of Prime Minister Malcolm Turnbull introduced in July a new energy policy to prioritize the domestic gas supply and regulate LNG exports. Australian oil and gas company Santos has seen its stock price decline, since it is likely to be subject to the regulations as early as next year.

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