Australia Dials Back Domestic Gas Reserve Requirements for LNG Exporters

Australia has modified its plan to force liquefied natural gas exporters to reserve supplies for domestic users. The country's Energy Minister Chris Bowen announced on Thursday that producers will be required to keep up to 20% of their export-bound LNG in Australia, but the amount will no longer be fixed.

Instead, the country's energy regulator will set an annual cap based on a rolling five-year demand forecast with an added 10% supply buffer. This change is aimed at making the reservation requirement more flexible and responsive to changing energy needs.