Australia's Natural Gas Reservation Proposal: A New Policy to Secure Domestic Supply

Australia has proposed a natural gas reservation policy mandating exporters to reserve 15% to 25% of production for domestic use. Current contracts remain unaffected. The policy, affecting new contracts, aims to ensure domestic supply before approving exports, according to Energy Minister Chris Bowen.

Australia unveiled a groundbreaking natural gas reservation policy on Monday, aimed at securing domestic energy needs. Under the new proposal, exporters will be required to reserve 15% to 25% of their gas production for the domestic market.

Energy Minister Chris Bowen clarified that the reservation policy would not alter existing contracts but would apply to future agreements. By mandating a portion of gas supply stays within the country, Australia aims to safeguard its energy resources.

The policy framework will be refined following consultations with industry experts and international partners. This collaborative approach seeks to balance Australia's export ambitions with its domestic energy requirements, Bowen noted.

(With inputs from agencies.)