Multiple legal experts have voiced concerns about the constitutionality of Peter Dutton's gas reservation plan. They argue that the plan's potential impact on existing gas investment treaties and its discriminatory nature toward Queensland gas producers violate existing laws.
The plan's implementation could trigger legal challenges from LNG producers, potentially ending in a High Court case. The government might need to either defend the policy or settle out of court. The multi-billion dollar investments by gas producers in Queensland projects may be protected under investment treaties, potentially allowing producers to sue the government for lost profits.
While the plan aims to lower household gas and electricity bills through a price cap of $10 a gigajoule, industry experts warn that this price is below production costs for many gas fields. This could discourage future investment in gas extraction and potentially create a gas shortage despite the plan's intention.