ADNOC’s Australia avoidance

The Middle East NOC’s decision to exit Santos signals changing rules for Australian gas investors

ADNOC’s withdrawal from its bid for Santos has demonstrated how commercial weaknesses and political pressures are converging in Australia’s East Coast gas market. Santos’ GLNG project has repeatedly drawn more gas from the domestic market than it contributes over the years, making it the only Queensland LNG venture to run at a net deficit consistently. That record matters because Canberra—after a decade of warnings from the Australian Energy Market Operator, the Australian Competition and Consumer Commission (ACCC) and industry analysts about tightening East Coast gas supply—is striving to demonstrate that it can guarantee reliable domestic supply. In that context, Santos faces tighter const