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The Australian government has confirmed plans to introduce a gas reservation scheme on the east coast, requiring gas producers to reserve at least 15 per cent of extracted gas for domestic use.
Energy Minister Chris Bowen said the move is aimed at securing local supply and placing downward pressure on gas prices, which have surged in recent years. The scheme is set to commence in 2027, but will apply to all new gas contracts signed from today.
Under the proposed model, exporters will be required to meet domestic supply obligations before exporting gas overseas. The government has opted for a permit-based reservation system, which will now undergo industry consultation.
Mr Bowen said the policy reflects public sentiment that Australians should have priority access to natural resources found within the country.
Australia is one of the world’s largest LNG exporters, yet the Australian Competition and Consumer Commission (ACCC) has warned that east coast gas supply could fall short of demand from 2028, despite sufficient reserves. At the same time, gas prices have tripled, placing pressure on households, electricity prices, and energy-intensive industries.
The proposal has drawn mixed reactions. The opposition described it as “too little, too late,” citing concerns that the delayed start date will not address immediate shortages. Industry groups and unions, however, welcomed the move, calling it a step toward long-term price stability and energy security.
The government maintains that gas will continue to play a key role as a transition fuel alongside renewable energy, while discussions continue on balancing domestic needs, exports, and future supply.
