The Australian government has announced a new east coast gas reservation policy, requiring producers to set aside 20% of export volumes for domestic users. The policy, starting 1 July 2027, aims to exert downward pressure on prices for households and businesses.
Industry group Australian Energy Producers criticised the move as a 'heavy-handed intervention' that could undermine Australia's reputation as a reliable trading partner. However, manufacturers welcomed the announcement, calling it the most significant structural reform to the gas market in a generation.
The government declined to endorse a new gas tax in a Senate inquiry report tabled on the same day, leaving the door open to future changes once the international oil shock from the Middle East conflict subsides.
Under the reservation, the three major Queensland-based gas exporters must prove they have met domestic supply obligations to secure permits for overseas spot market sales. The 20% mandate sits within the 15%-25% range previously canvassed with industry.
Climate and energy minister Chris Bowen said the legislative requirement would deliver a modest oversupply, helping avert forecast shortages. Resources minister Madeleine King added that the domestic market would no longer be hostage to international markets.
