The government believes that by reserving a portion of supply, it can engineer a slight oversupply in the local market \u2014 enough to put downward pressure on prices. The plan follows a six-month review into the gas sector, launched in response to growing concerns about rising prices and potential shortages later this decade. The review examined the competing interests of exporters, manufacturers, unions, and international trading partners.<\/p>\n\n\n\n Australia is one of the world\u2019s largest LNG exporters, yet domestic users have seen prices soar. On the east coast, gas costs have tripled in the past few years, pushing up electricity bills and threatening energy-hungry industries like aluminium smelting. The government has already spent billions keeping factories afloat. Under the new permit-based model, exporters will need to meet domestic supply obligations before sending gas overseas.<\/p>\n\n\n\n Bowen said he had already spoken with officials from Japan, South Korea, Taiwan, Malaysia, and Singapore \u2014 key buyers of Australian gas \u2014 to assure them the policy won\u2019t destabilise international markets. The Australian Competition and Consumer Commission (ACCC<\/a>) has warned that gas supply could fall short by 2028, despite having enough reserves for the next decade. That shortfall, the government says, makes domestic reservation essential.<\/p>\n\n\n\n Reactions have been mixed. The Coalition said the government\u2019s plan was \u201ctoo little, too late,<\/em>\u201d arguing that a 2027 start date won\u2019t help with current price pressures. Industry leaders echoed similar concerns, warning that while the reservation scheme might help stabilise supply, it won\u2019t fix the core issue \u2014 the lack of new gas development. Bowen acknowledged that more gas production would likely be necessary, given the depletion of the Bass Strait fields.<\/p>\n\n\n\n He called gas an \u201cimportant support<\/em>\u201d during Australia\u2019s transition to renewable energy. Environmental groups disagreed, saying Australia doesn\u2019t have a gas shortage \u2014 it has an export problem. Nearly 80 percent of Australian gas currently goes overseas, and groups like the Australian Conservation Foundation argue that redirecting a portion of that supply to domestic users would be a better solution than approving new projects.<\/p>\n\n\n\n Industry Minister Tim Ayres said the reservation scheme will bring \u201ccertainty<\/em>\u201d for workers and heavy industries that still rely on gas as a stabilising force. The Australian Workers Union called it a \u201chistoric victory<\/em>\u201d for manufacturing, saying it should have been implemented years ago. The Australian Energy Producers lobby group cautiously welcomed the plan, noting that while it provides long-term stability, only new gas supply will ensure lasting price relief.<\/p>\n\n\n\nWhy the Gas Market Needs a Reset<\/h2>\n\n\n\n
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Divided Views on the Policy<\/h2>\n\n\n\n
Energy, Jobs, and the Road Ahead<\/h2>\n\n\n\n