Australia, the world's second-largest liquefied natural gas (LNG) exporter, is reviewing measures to control gas exports in response to the prolonged blockade of the Strait of Hormuz. Australia is the largest source of South Korea's LNG imports, accounting for approximately 31% of the total. A resource nationalism trend of locking down energy exports is rapidly spreading as a Middle East-driven energy crisis deepens.
Meanwhile, Iran, which has begun collecting transit fees for the Strait of Hormuz, is amplifying concerns over a global energy crunch by offering "discount benefits" to friendly nations while imposing higher fees on hostile states.
On Wednesday, Australian Resources Minister Madeleine King said she is reviewing the activation of the Australian Domestic Gas Security Mechanism (ADGSM), which prioritizes domestic supply over exports. Once the ADGSM is triggered, Australian gas exporters must direct uncontracted gas volumes to the domestic market before exporting.
