Australia Extends 20% LNG Reservation to Existing Contracts
Updated
Updated · Bloomberg · May 25
Australia Extends 20% LNG Reservation to Existing Contracts
1 articles · Updated · Bloomberg · May 25
A draft policy released Monday would make all Australian LNG projects reserve 20% of produced gas for domestic buyers, widening the rule to cover existing export contracts.
Contracts signed on or before Dec. 22, 2025 would be honored only if producers can show they cannot meet the domestic set-aside or source extra gas without breaching those deals.
The tougher approach increases pressure on exporters to secure additional supply as Canberra moves to bolster local gas availability.
Industry groups have pushed back, warning the policy could deter investment and undermine Australia’s standing as a reliable LNG exporter.
Has Australia’s gas reservation policy already tarnished its reputation as a reliable global energy partner?
Will reserving LNG exports lower Aussie power bills, or is a faster switch to cheaper renewables the real answer?