Gas exporters will be forced to divert one-fifth of their product into the domestic energy market in a bid to drive down prices and tackle predictions of long-term shortages.
Energy Minister Chris Bowen unveiled plans on Thursday for an east coast gas reserve, which would involve 20 per cent of exports being set aside for use in Australia from July 2027.
“This is a carefully calibrated model which ensures that Australia’s national best interests are put first,” he told reporters in Sydney on Thursday.
“Australia has been the only gas-exporting country in the world without some form of reservation policy.
“That changes under the Albanese government.”
The reservation plan would apply to terminals in Queensland and the Northern Territory, and would only apply to contracts signed after the policy takes effect.
Mr Bowen first flagged the reservation policy in December over gas sector opposition.
In his remarks on Thursday, the minister conceded not everyone would be happy with the change.
The reserve plans come as the federal government all but rules out new measures to tax gas exports in Tuesday’s budget.
Gas exports from Australia have been used as leverage in negotiations with Southeast Asian neighbours to shore up fuel supply as the Iran war causes havoc with oil prices.
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