Australia Relaxes Gas Export Rules Amid Oversupply Fears
Australia has relaxed its proposed rule that would have forced natural gas exporters to reserve 20% of their output for the local market. The new requirement will instead be determined by the Australian Energy Regulator, which may require export firms to hold back up to a fifth of their production.
The proposal aims to ensure that the east coast gas market has an oversupply of 110% of estimated demand, which has faced shortfalls for nearly a decade. The falling volumes from Victoria have reduced supply, and some LNG producers have bought domestic production to meet export quotas.
Energy Minister Chris Bowen said in a statement that the proposed policy will 'ensure gas is more affordable and the domestic market is always modestly oversupplied.' The start date of the scheme has been pushed back by six months to January 1, 2028, with existing export contracts unaffected by the policy.