Producers of liquefied natural gas (LNG) on Australia’s east coast will have to set aside 20% of their gas exports to be sold to domestic users from July next year.
The long-awaited gas reservation plan, unveiled on Thursday, is well overdue. But it will not come into effect until July 2027, six months after it was originally supposed to start.
The policy is expected to lead to a “modest” oversupply in domestic gas in eastern Australia. Gas exporters in Western Australia have had to set aside 15% since 2006, though compliance is poor.
