Gas companies will be forced to set aside 20% of exports for domestic use under a reservation scheme designed to shore up supplies and bring down prices for households and businesses on the east coast.<\/p>\n
The federal government announced the design of the reservation scheme on Thursday as part of a wider overhaul of the mechanisms regulating the gas sector<\/a>.<\/p>\n Under the policy, which will start on 1 July 2027, the three big Queensland-based gas exporters would be forced to preserve an equivalent of 20% of export volumes for east coast market customers.<\/p>\n The companies would need to prove to the federal resources minister that their domestic supply obligations have been met to secure a permit to sell to the overseas spot market.<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n The 20% mandate sits in the middle of the 15%-25% range that the government canvassed with industry after announcing its commitment to a gas reservation on 22 December.<\/p>\n It will not apply to contracts signed before that date.<\/p>\n The climate change and energy minister, Chris Bowen, said the legislative requirement would deliver a \u201cmodest oversupply\u201d of gas into the east coast, helping to avert forecast shortages and put \u201cdownward pressure\u201d on prices.<\/p>\n The start of LNG exports out of the east coast a decade ago linked the domestic market to the international market, leading to a tripling of prices and leaving Australian customers exposed to overseas shocks \u2013 such as Russia\u2019s war in Ukraine.<\/p>\n \u201cOur gas market will no longer be hostage to international markets,\u201d said the resources minister, Madeleine King.<\/p>\n King announced wider changes to gas market rules, including removing the so-called \u201cgas trigger\u201d that can be used to force exporters to preserve supplies for domestic use.<\/p>\n The interventions come as the federal government resists mounting pressure to introduce a 25% tax<\/a> on gas export revenue.<\/p>\n