Australia's liquefied natural gas (LNG) exporters are projected to see a $27 billion increase in revenue due to ongoing conflicts in the Middle East, according to government estimates released this week. The Department of Industry, Science and Resources stated that LNG export earnings for the 2026-27 fiscal year are expected to reach $67.6 billion, which is $21 billion higher than previous forecasts made in December.
Key Details
The report attributes the surge in earnings to a shift in the global LNG market, which has seen a decrease in supply following Iranian missile attacks that disrupted Qatari gas facilities. This shift has resulted in higher prices for LNG globally. The department also revised its estimates for the previous financial year, increasing them by $6 billion, and warned that further disruptions could add an additional $7 billion to LNG exports in 2026-27.
Background
Calls for higher taxes on gas exports have intensified as independent senator David Pocock highlighted the windfall for gas companies. Pocock stated,
Our campaign for a gas tax isn’t going away and huge wartime revenue for gas companies again underscores how as Australians we are missing out on a fair return from the sale of our finite resources.
He plans to target Labor's national conference with advertisements advocating for this tax reform.
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The projected increase in LNG revenues could influence the Australian dollar and energy sector stocks, as higher export earnings may strengthen the currency and boost investor sentiment in energy companies. Investors will watch for the Albanese government's response to the calls for a gas tax at the upcoming national conference.