Australia's Gas Export Reservation Plan Takes Shape

The Australian government has proposed a new scheme requiring gas companies to reserve up to one-fifth of their exports to supply the domestic market.

The plan, announced by Energy and Climate Change Minister Chris Bowen, aims to ensure Australia is modestly oversupplied with gas, keeping prices in check for households and industry.

The government's original proposal to require LNG exporters to reserve 20% of their exports has been modified to make it a ceiling rather than a fixed requirement. This change has been met with criticism from Labor, which accused the government of 'watering down' its own plan.

Industry Minister Tim Ayres defended the proposal, saying it would provide more secure jobs in Australia's industrial regions and allow future investment by ensuring cheaper energy prices.