Overview
- The federal government published a draft design for a national domestic gas reservation scheme on Monday that would require LNG exporters to supply a domestic obligation equal to 20% of their exports each year.
- The draft sets out how producers must supply gas rather than merely offer it and lists compliance options such as cutting exports, importing LNG, swapping supply with other firms or underwriting extra domestic supply, with penalties up to $100 million or export restrictions for non‑compliance.
- Western Australia says it has been assured the national design will be compatible with its 15% life‑of‑project reservation and will engage with Canberra, but WA leaders warn of supply choices including developing Browse or using unconventional methods if shortfalls materialise.
- Industry groups led by Australian Energy Producers warn the design will create investment uncertainty, could undermine new supply and damage Australia’s export reputation, while conservationists say a stronger national scheme could correct WA enforcement failures that allowed only about 8% of the promised state quota to reach local users.
- The draft is open for consultation until the end of June, must clear further legislative steps before operation, and the government is targeting the scheme to take effect from July next year as it fits into a wider A$10 billion fuel‑security package and AEMO projections of tighter gas supplies in the early 2030s.