Australia Softens Gas Export Rules Amid Pressure from Asia
Australia has softened its proposed laws requiring gas exporters to reserve more supply for domestic buyers after holding talks with producers and buyers.
The modified plan, set to take effect from January 2028, will still require liquefied natural gas shippers to reserve up to 20% of their export volumes for local customers. This is designed to force a 10% domestic oversupply each year to lower fuel costs.
Federal ministers made key concessions to ensure the oversupply would be 'modest' and provide assurances to Australia's Asian LNG buyers that long-term contracts will be honored. This includes the possibility of lowering the reservation level when forecast domestic demand is weak, as well as giving ministers discretion to reduce gas supply to local markets when producers are constrained by existing contracts.