Gas producers on Australia’s east coast will have to reserve a portion for domestic use to shore up supply and put “downward pressure” on prices, the federal government has confirmed.
The long-awaited move was signed off by cabinet in Canberra on Monday and will now be subject to a period of consultation.
After much deliberation about the best model for a reservation scheme, Energy Minister Chris Bowen and Industry Minister Tim Ayres said cabinet had settled on a permit scheme.
That would see exports limited until producers ensured that between 15 and 25 per cent of extracted gas was reserved for local use.
Mr Bowen said the scheme would start operating in 2027 but would apply to any new contracts entered into from today.
“Most Australians think that Australians should have first rights to what’s under Australian soil … and Australians are right about that,” Mr Bowen said.
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