There is "some risk" of Beach Energy (ASX:BPT) being an attractive acquisition target for some of the larger liquefied natural gas (LNG) exporters due to an Australian government plan to force gas producers to keep a fifth of new production domestically, Bloomberg News reported on Wednesday, citing an interview with the firm's Chief Executive Officer Brett Woods.
The government's plan will apply to prospective contracts and the spot market from July 1, 2027. Such a plan risks driving away upstream investment and leading to prices returning to a much higher level, Woods said.
Beach's oil and gas portfolio could be appealing to export-focused producers on Australia's east coast, he added.
Beach's shares were up 1% in recent trading on Wednesday.
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