Key facts
- Australia is finalizing rules for a Domestic Gas Reservation Scheme.
- LNG exporters will be required to reserve up to 20% of their production for the domestic market.
- The scheme will take effect on July 1, 2027.
- Legislation underpinning the scheme will be introduced next week.
- Exact volumes reserved will be set annually based on a rolling five-year demand forecast.
- Australia is expected to have plentiful gas supply for the January-March 2027 quarter.
The Australian government is nearing the finalization of its Domestic Gas Reservation Scheme, which will mandate that liquefied natural gas (LNG) exporters reserve up to 20% of their total production for domestic consumption. This initiative aims to address anticipated supply issues on Australia's east coast by the end of the decade and bolster national energy security. The legislation underpinning the scheme is expected to be introduced next week, with the rules officially coming into effect on July 1, 2027.