Woodside Energy, Santos and other Australian oil and gas producers that also have international operations are likely to redirect capital to projects overseas as a result of the federal government’s gas market intervention, raising the risk of a domestic supply shortage, according to value investor Allan Gray.

Portfolio manager Suhas Nayak said that while the longer-term impact of the Albanese government’s intervention remains to be seen, the move to impose “reasonable pricing” provisions on east coast gas sales could change the rate at which investments were paid off in the east coast market compared with elsewhere, influencing where capital is directed.