Australia Eases Gas Reservation Rules for LNG Exporters Amid Domestic Supply Concerns

Australia has revised its gas reservation rules for LNG exporters, allowing them to reserve up to 20% of their output based on decisions made by the energy regulator. This change is aimed at maintaining a modest oversupply in the domestic market and ensuring an estimated 110% supply of demand for the east coast gas market.

The previous rule would have required natural gas exporters to keep 20% of their output for the local market, but the new plan will implement a scheme that sets the amount reserved for domestic use by the Australian Energy Regulator (AER).

Energy Minister Chris Bowen stated that the aim of the policy is 'to make gas more affordable and maintain a modest oversupply in the domestic market'. The implementation of this scheme has been delayed by six months and is now set for January 1, 2028, without affecting existing export contracts.