Joint media release: Landmark legislation to secure Australian gas for industry and households
The Albanese Government is introducing landmark legislation to ensure Australian gas works for Australians. Australia’s first national Domestic Gas Reservation will reserve gas for Australian industry and households, promote new investment, jobs and growth, and underpin Australia’s energy security for generations. The Domestic Gas Reservation will put downward pressure on gas prices for households, manufacturers and heavy industry while ensuring we have sufficient gas to support Australia’s energy transition.
Australia is one of the world’s largest LNG exporters. Gas exports earn income for Australians and underpin the energy needs of the fastest growing region in human history. Australia will remain a reliable export partner and regional contributor.
But the Domestic Gas Reservation will ensure our abundant gas resources are value-added at home by linking the right to export with a new domestic supply obligation. The new domestic supply obligation is 20% of LNG exports, calibrated to forecast domestic demand. While future gas prices are influenced by international and domestic factors, more gas supply in the market means more affordable gas for households and large energy users.
The Reservation will replace multiple Commonwealth interventions in the gas market with an integrated rules-based framework that supports investment in production and long-term contracting between gas producers and energy users. The Albanese Government has consulted widely and listened carefully to gas producers, manufacturing firms, energy users and states and territory governments throughout consultation on the design of reservation.
The legislation introduced into Parliament today improves implementation, transparency and certainty while maintaining the core objective: Australian gas must work for Australians. Quotes attributable to Minister for Climate Change and Energy, Chris Bowen: “Australians deserve access to affordable gas. That's exactly what this reform delivers.
“For too long Australians have watched our gas leave our shores while local households and businesses faced uncertainty and rising costs and despite being one of the world’s largest gas producers we still suffered shortages and price shocks at home. “These reforms lock in more gas for Australians, strengthen our energy security, support our energy transition to more renewables and help put downward pressure on prices.” Quotes attributable to Minister for Resources, Madeleine King: “Australia is one of the world's leading LNG exporters, and this legislation ensures Australians receive a fair benefit from our abundant gas resources while maintaining our position as a trusted supplier to global markets.
“Australia's gas resources are a national asset. Australians rightly expect those resources to support both our export success and our domestic economic prosperity. “The Domestic Gas Reservation Scheme will make more Australian gas available to Australian users while respecting existing contracts and preserving certainty for investors and trading partners.” Quotes attributable to Minister for Industry and Innovation and Minister for Science, Tim Ayres: “Australian industry needs reliable gas supply and greater certainty for the future.
“This legislation is about securing Australian gas for Australian industry, driving down prices to build a more resilient manufacturing sector. “All members of Parliament have a choice. This is crucial for Australian industrial jobs – a vote against reservation is a vote against blue collar Australia.” We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture.
We pay our respects to their Elders past, present and emerging.