New Gas Reservation Scheme to Boost Domestic Supply in Australia
Gas companies forced to set aside local supply under major Labor shakeup
The Guardian
Image: The Guardian
The Australian federal government has announced a new gas reservation scheme requiring gas companies to allocate 20% of their export volumes for domestic use starting July 1, 2027. This policy aims to stabilize supplies and lower prices for households and businesses on the east coast, addressing concerns over international market volatility.
- 01Gas companies must reserve 20% of exports for domestic use starting July 1, 2027.
- 02The policy aims to prevent forecast shortages and reduce prices for east coast consumers.
- 03The reservation scheme is part of a broader overhaul of Australia's gas market regulations.
- 04The government has ruled out a new tax on existing gas export contracts to avoid backlash from trading partners.
- 05A parliamentary inquiry on a potential gas tax is expected to report soon.
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The Australian federal government has introduced a gas reservation scheme mandating that gas companies reserve 20% of their export volumes for domestic use, effective July 1, 2027. This initiative aims to enhance gas supplies and reduce prices for households and businesses on the east coast, which have been impacted by international market fluctuations. The scheme is part of a wider reform of the gas sector, responding to rising prices linked to the global market, particularly following events like Russia’s war in Ukraine. Resources Minister Madeleine King emphasized that the new regulations would provide a “modest oversupply” of gas, helping to avert shortages. Additionally, the government has decided against imposing a new tax on existing gas export contracts in the upcoming federal budget to maintain good relations with Asian trading partners. A parliamentary inquiry on the potential for a new gas tax is set to present its findings soon.
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This policy is expected to provide relief to households and businesses facing rising gas prices, ensuring more stable and affordable access to energy.
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