Energy Minister Chris Bowen announced a new east coast gas reserve on Thursday. The policy compels LNG exporters to reserve 20% of production for domestic use. This mandate begins in July 2027 to combat projected long-term energy shortages and high local prices.
The rules apply to export terminals in Queensland and the Northern Territory for contracts signed after implementation. This shift ends Australia's status as a major gas exporter without a domestic reservation policy.
The decision impacts the project economics of major producers including Shell, Origin Energy, and Santos. Bowen acknowledged industry opposition to the measure.