Exporters of LNG from Australia’s eastern coast could be required to divert spot cargoes for the domestic market this winter as the country’s energy market operator forecasts increased peak demand and greater future supply uncertainty.

The Australian Energy Market Operator (AEMO) recently published an updated outlook of the country’s domestic supply risks and the potential impacts on its lucrative liquefied natural gas export industry. As production from Australia’s southern offshore fields continues to dwindle, regulators and politicians are placing increasing pressure on LNG producers in the Queensland region to help supply more gas for consumers.

A shortfall was avoided during the current winter, thanks in part to an agreement forged between the federal government and...