Australia to Mandate 20% Domestic Gas Reservation for LNG Exporters

Key Facts

1The Australian government will introduce a bill next week requiring LNG exporters to reserve up to 20% of their production for domestic use.

The Australian government will introduce a bill next week requiring LNG exporters to reserve up to 20% of their production for domestic use. Oilprice.com reported that the legislation aims to address anticipated gas supply shortages on Australia's east coast by the end of the decade, with specific volumes to be set annually based on a rolling five-year demand forecast.

These regulatory plans emerge as Australia seeks to protect domestic energy security, despite industry concerns regarding the impact on export reliability. According to the Department of Industry, Science and Resources, while a supply surplus is expected in the first quarter of 2027, the reservation scheme is scheduled to officially commence on July 1, 2027, to ensure long-term market stability.