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Australian prime minister Malcolm turnbull (MalcolmTurnbull) declared that Australia is in the energy crisis, or the need to reduce the liquefied natural gas (LNG) exports, in order to maintain stable domestic energy supply.

The main driver of liquefied natural gas (LNG) is Australia's export growth. From the International Gas Union (the International Gas Union), according to data from Australia is the world's second largest exporter of LNG, exports accounted for 12% of the world market in 2015, its Gas exports rose by 47% in 2016 to 45 million tons.

Japan is one of the largest consumer of Australia LNG, China is the second largest consumer. China's first LNG receiving station gas source gas is Australia. Due to affected by extreme weather in Australia in the year of 2016, power grid operation is not stable, had a massive power failure, the current domestic facing the gas shortage problem. Mr Turnbull said the Australian citizens have the right to enjoy the cheap and stable gas supply. Australia's natural gas shortages and increasing pressure of the electricity market is very worried.

In terms of energy security, federal and state governments

On March 15, Australia's prime minister in Canberra and royal Dutch shell, exxon mobil, Total (Total SA) and the Australian Origin Energy company (Origin Energy Co., Lt) d and Santos company (Santos Ltd) for talks. After talks to end the day, south Australia state government announced plans from state grid, achieve their control power reserve of power, for an additional need. He through the drilling for gas in farmers' land and provide them with direct use of franchise methods to increase the reserves. His plan designed to allow utilities to serve the interests of south Australia, which may conflict with the national electric power market.

The federal energy and environment minister got Josh berg (Josh Frydenberg) are very concerned about south Australia's plan, and support to encourage landowners to accept the natural gas resource development plan, think that this measure can be copied across the country, in order to reduce the wholesale gas prices.

However, south Australia in the case of without the federal government censorship had to take action. The current flight deng's is considering whether the move violates the market rule. He said: "we don't want to see the market have been states... in their jurisdiction to make a decision, may damage the interests of other jurisdictions."

Free markets and national energy security

Governor of south Australia tonyvicky (JayWeatherill), said the national electric power market "broken", and accused the federal government to eliminate carbon tax bill caused insufficient investment of the natural gas market pushing prices higher. South Australia state over the next few weeks have been "dramatic" carried out for the crisis intervention, and clearly attitude will not rule out partial privatisation back into nationalisation.

Australia's prime minister, Mr Turnbull also called on the Australian states to improve conditions of natural gas development. Australian companies, he says, has lost its international competitive advantage, namely, cheap and stable source of energy. The gas production of one of the biggest obstacle is exploration ban on the implementation of Victoria and the northern territory.

Victoria's local farmers also worry that the natural gas exploration and exploitation of groundwater pollution and even exhausted, affect agricultural production. The government ban, therefore, ban rock page of gas and coal seam gas drilling operation.

Turnbull said, "Victoria government formulated the proportion 50% renewable energy target, lead to local coal-fired power plant shut down, and don't allow in the state in exploitation of natural gas resources, I think the decision is ridiculous. We need more gas for industrial, mining and create more jobs."

Victoria, government officials said the ban will enhance the reputation of the department of agriculture, Victoria reduce farmers the health risks related to the environment caused by hydraulic fracturing, and concerns.

Turnbull said in a statement: "the government and the industry it is necessary to realize through to promote safety and competitive energy market to promote natural gas supply and reduce emissions. Ensure that the only sustainable way is to fully develop our natural gas reserves of natural gas."

Victoria and new south wales mining gas ban

Turnbull, the energy crisis problem to respond, he blamed the problem on the opposition Labour party state. In talks with representatives of the oil and gas industry, he put pressure on Victoria and new south wales, lifting the ban on exploration and exploitation of natural gas requires two states, said Australia into the energy crisis is largely due to the restrictions.

The federal government wants to increase the domestic supply, gas company to expand the domestic gas market, by improving the gas production to reduce the price. Mr Turnbull warned that if the gas company to the domestic industry were not available, so they will be missing out by not achieve storage quota and the risk of "business license".

Victoria wholesale gas prices surging in February from $6 to $22 per gallon. Natural gas industry in urgent need of adjustment. Australia's natural resources minister Matthew connor wan (Matthew Canavan) said in a briefing, it is not the federal government can intervene in the land management, any loosening of the drilling ban action needs to be in the states to cooperate.

Australia's prime minister, Mr Turnbull noted that broken coal, switch to natural gas is not the fundamental way to solve the energy crisis. He points out, not only in the condition of natural gas is in short supply in Australia, also lack the necessary technology related to natural gas power generation.