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Australia natural gas: Unintended consequences

The Australian National Institute of Economic and Industry Research released a report titled "Large scale export of East Coast Australia natural gas: Unintended consequences." The report was backed by manufacturing groups, the Australian Industry Group and the Plastics and Chemicals Industries Association and revealed some of the unintended consequences of Australian LNG exports.

The report found that for every $1 of benefit gained by LNG export $24 of benefits was lost in the contraction of the gas-dependent industries.

The debate in Australia on LNG exports has similarities to the U.S. debate. Both countries currently enjoy an abundance of natural gas, which could be used to fuel value-added, downstream domestic manufacturing investment. Both can maintain their competitive advantage through a balanced approach to exports that benefits both producers and domestic consumers.