Overview

• The Coalition's gas reservation policy seeks to redirect 50-100 petajoules of uncontracted gas annually from Queensland's LNG exports to the domestic market, aiming to lower wholesale gas prices from $14 to $10 per gigajoule.
• Experts question the feasibility of achieving significant price reductions due to rising production costs and market dynamics, with new gas production costs often exceeding $9 per gigajoule.
• The gas industry warns the policy could deter investments in new gas supplies, disrupt market operations, and harm relationships with long-term LNG buyers in Asia.
• Major gas users, particularly in manufacturing, have welcomed the plan, citing the need for lower energy costs to remain competitive in a gas-rich nation.
• The policy, introduced as a central element of the Coalition's election strategy, includes a $1 billion investment in gas infrastructure and promises to reduce regulatory barriers for new projects, though implementation details remain unclear.