Major natural gas producers against Australia's price cap plan

Major natural gas producers opposed Australia's plan to cap domestic prices. The companies explained that the policy could lead to a supply shortage due to the reduction of new investments.

The government said Friday it intends to temporarily intervene in the coal and gas markets. The measures would be aimed at supporting producers in the face of expected increases in electricity prices for domestic consumption. 

The intervention policy has gone too far, according to a lobbying group represented by such companies as Shell Plc, ExxonMobil Corp. and Chevron Corp. Now we are talking about a threat to the investment sphere as well.

A domestic restriction would help protect consumers. It's impossible not to mention that Australia is one of the world's largest exporters of natural gas. Canberra has been warning about these measures for months and decided not to impose a contingency tax. The duty would have targeted a projected A$20 billion ($13.5 billion) increase in gas exports through June next year.