Australia Dials Back LNG Export Reservation Plan Amid Industry Concerns
Australia has softened its plans to force liquefied natural gas (LNG) exporters to reserve supplies for domestic users. The government had previously proposed a fixed requirement of 20% of annual output, but will now cap exports at 20% based on demand.
The new rules, set to take effect in 2028, mean that producers will be required to keep as much as 20% of their export-bound LNG in Australia. The amount will be determined annually by the country's energy regulator, based on a rolling five-year demand forecast with an added 10% supply buffer.
The policy is set to affect major projects in Queensland, including Australia Pacific LNG, Gladstone LNG and QCLNG. Overseas partners had sought assurances that existing contracts would be honored, while other feedback warned that excessive domestic supply could deter investment.
Energy Minister Chris Bowen said the government had consulted closely with the industry since proposing the legislation in May. He stated that the new measures will ensure Australia remains a reliable supplier of energy and provide additional gas to meet manufacturing demand.