Australia Weighs LNG Windfall Tax

Prime Minister Anthony Albanese has asked Australia's Treasury to look into imposing a windfall tax on the country's vast liquefied natural gas industry, to capitalize on soaring prices of the fuel. The request for modeling was confirmed by Energy Minister Chris Bowen at a press conference on Friday. Global prices of LNG have surged due to supply disruptions caused by the war in the Middle East. The critical Ras Laffan LNG hub in Qatar, which provides about a fifth of global exports, sustained extensive damage in an Iranian missile attack this week and may take years to repair. Meanwhile, cargoes remain trapped as the Strait of Hormuz remains effectively closed. Australia was the world's third-largest LNG exporter last year, shipping nearly 80 million tons worth A$65 billion. The industry lobby, Australian Energy Producers, warned that higher taxes would deter investment in new gas supply and lead to domestic shortfalls.