Reuters: Australian Manufacturers Seek Cap on Gas Exports

A group of eight top Australian manufacturers has urged the government to cap gas exports to protect domestic industries from sharp price rises they would face if forced to compete with overseas buyers for the fuel.

The companies, which have formed the lobby group Manufacturing Australia, said domestic manufacturers faced export-level prices for future gas contracts that are double production costs, hurting their competitiveness.

'Australia should keep some of the gas for local manufacturers and reserve some for clean energy,' said James Fazzino, chief executive at fertiliser and explosives maker Incitec Pivot, which uses gas as its key raw material.

Fazzino made the comments at a conference at which manufacturers including Bluescope Steel, building products maker CSR and Boral asked the government to ease regulation and raise anti-dumping norms to save Australian industry. MORE