Australia has introduced new legislation aimed at boosting domestic gas supply by requiring the country’s A$70 billion ($49 billion) liquefied natural gas (LNG) export industry to allocate more gas to local customers. The Domestic Gas Reservation Scheme, set to be submitted on Wednesday, will mandate producers to supply up to 20% of their export volumes to Australian consumers starting in 2028.
The government and regulators will annually adjust the required supply based on consumption forecasts, with the goal of ensuring supply meets at least 110% of local demand. Producers have expressed concerns that the measure could discourage investment in new gas fields, highlighting potential long-term impacts on the industry.
The legislation is part of broader efforts to secure stable gas supplies for Australian households and businesses, particularly amid rising energy demands and global market fluctuations.