Australian LNG producers rise after more favourable petroleum tax change

May 8 (Reuters) - Shares of Australian liquefied natural gas (LNG) producers rose on Monday after the government adopted more favourable-than-expected changes to petroleum tax, ensuring the load was shared across the industry and did not impact growth projects. Woodside Energy Group Ltd , the country's biggest independent oil and gas producer, was trading 3.1% higher, while closest rival Santos Ltd was up 1.6% as at 0031 GMT. Beach Energy Ltd jumped 2.3%. Over the weekend, Australia announced plans to change its Petroleum Resource Rent Tax (PRRT) to increase the tax paid by the offshore LNG industry, moves that should increase revenue by A$2.4 billion ($1.6 billion) over the next four fiscal years. The government will adopt eight of the 11 recommendations from a Treasury review of gas transfer pricing rules, including a key proposal that will limit the proportion of PRRT assessable income on LNG projects that can be offset by deductions to 90% from July 1. "The deductions cap seems to have struck a good balance between sharing the load across industry, earning more cash tax for government, and not threatening economics of growth projects," analysts at Citi wrote in a note. "Treasury was cognisant not to introduce a system whereby the extraction of higher cash receipts for an 'equitable' outcome for Australians meant we also didn't extract our own natural resources." Woodside and Santos did not immediately respond to a Reuters request for comment. Citi analysts expect this to be the last change to PRRT before the legislation expires in April 2026, when it may require an overhaul.

(Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)