US EditionAlbanese government announces gas reservation plan to address supply and price
Permit-based scheme mandates 15-25% gas reservation for domestic use from new contracts, starting 2027, to address supply shortfalls and lower wholesale prices, government says.
- On Monday Cabinet approved a permit-style east coast gas reservation requiring exporters to reserve 15% to 25% for domestic use, applying to contracts entered from today and starting in 2027.
- Pressure built after the Australian Energy Market Operator warned of south-eastern shortfalls as three factors compound shortages: large Queensland exports, full pipelines, and declining Bass Strait gas fields, prompting calls from business groups and the Victorian government for an east coast reservation.
- The reserve would total between 200 and 350 petajoules per year, ministers emphasised gas's role as a quick-ramping backstop while Australia moves toward 82% renewables, and two Queensland LNG joint ventures backed by Origin Energy and Shell signalled willingness to work on design.
- Manufacturing Australia welcomed the milestone but urged delivery, while Santos-backed Gladstone LNG venture and Asian LNG customers warned designs could deter investment; the government will consult industry over the coming months.
- Mirroring Western Australia's 2006 model, the east coast market remains separate while households shifting to electric stoves and heaters prompt the government to seek downward pressure on wholesale prices.
18 Articles
18 Articles
Gas Reservation Promises ‘Downward Pressure’ on Prices
Gas producers will need to set aside a portion of their supplies for domestic use under a national plan to ease shortages and exert “maximum downward pressure” on prices. Between 15 and 25 percent of gas will be reserved for Australian manufacturers, households, and electricity grid backup, with the exact proportion to be ironed out after consultation. Energy and Climate Change Minister Chris Bowen said the regime would put “downward pressure” o…
Landmark project to transform energy market after soaring prices
Domestic gas producers will be made to reserve up to 25 per cent of production for the Australian market under the federal government's east coast gas reservation plan.Climate Change and Energy Minister Chris Bowen said the landmark gas policy announced today would push down prices and fortify the east coast industry by engineering a "slight oversupply".The scheme has been earmarked to begin in 2027 but will be applied prospectively to new cont…
Financial Post
Australia to Require Up to a Quarter of New Gas for Local Market
(Bloomberg) — Australia will require natural gas exporters to reserve as much as a quarter of new production for domestic use, in a bid to tackle high prices and a forecast shortfall on its more populated east coast.
Albanese government announces gas reservation plan to address supply and price
The federal government has announced its much-anticipated gas reservation scheme, to provide security for Australia’s domestic supply and put downward pressure on prices. The scheme, working though permits, will only affect new contracts. Although it will apply to all new contracts from now, the plan will not begin operating until 2027. Consultations on details will start in the new year. The government acknowledges the importance of gas in the …
Coverage Details
Bias Distribution
- 42% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
