Australia has introduced new legislation aimed at ensuring its liquefied natural gas (LNG) exporters prioritize the domestic market. The bill, part of the Domestic Gas Reservation Scheme, will compel producers to allocate up to 20% of their export volumes to Australian consumers starting in 2028. The government plans to adjust this requirement annually based on consumption forecasts, with the goal of ensuring supply meets at least 110% of local demand.
The move targets the nation’s A$70 billion ($49 billion) LNG export industry, which has faced criticism for not adequately addressing domestic supply shortages. Producers, however, have expressed concerns that the legislation could deter investment in new fields, potentially impacting long-term production capabilities.
The bill is set to be submitted on Wednesday, marking a significant step in the government’s efforts to balance export revenues with domestic energy security. The legislation will empower regulators to fine-tune the supply requirements each year, ensuring flexibility in response to changing market conditions.