Australian LNG producers are concerned that growing fiscal, regulatory and legal challenges could impact investment in the industry. The government is set to announce on Tuesday the 2023-24 federal budget for the financial year starting from July 1. The government’s changes for the petroleum resource rent tax (PRRT) is followed closely by the LNG sector. The PRRT is a profit-based tax on offshore upstream gas projects that allows for deductions for the cost of exploration and development. Revenue from the PRRT is predicted to peak at A$2.6 billion ($1.7 billion) in 2023, before declining to about A$2 billion from 2024. As future investment in offshore LNG developments is limited, the government may look to increase taxation for the existing projects. 

European consumers of coal and metals have turned to Australian and South African producers to find alternatives to Russian supply, but logistics and cost constraints make it difficult to boost supply in the short term. Since Russia launched an invasion on Ukraine on Feb. 24, prices of palladium, coal and other commodities have skyrocketed as Western consumers try to replace Russian supply.

Saudi Arabia’s crown prince and de facto leader Prince Mohamed Bin Salman told planners to move ahead with the $20 billion culture and tourism project despite the country’s economic problems caused by Covid-19 pandemic and energy market crisis.