THE HON CHRIS BOWEN MP
MINISTER FOR CLIMATE CHANGE AND ENERGY

THE HON MADELEINE KING MP
MINISTER FOR RESOURCES

SENATOR THE HON TIM AYRES
MINISTER FOR INDUSTRY AND INNOVATION
MINISTER FOR SCIENCE

The Albanese Labor Government will introduce a domestic gas reservation scheme that will require gas exporters supply a proportion of their total production to the Australian market – equivalent to 20 per cent of exports, from 1 July 2027 – ensuring Australians have the affordable gas they need.

The 20 per cent domestic reservation will put strong downward pressure on domestic gas prices, shield our industry and households from global price volatility, and ensure Australia’s energy security by avoiding potential gas supply shortfalls.

It is a key plank of our plan to build Australia’s energy sovereignty, alongside growing our fuel reserves and supporting more fuels made in Australia to stay in Australia.

Secure and affordable gas is key for our Future Made in Australia agenda, particularly for nationally significant, trade exposed industrial users who can’t currently electrify.

Gas has an important role to play in our energy system as we transition towards 82 per cent renewables. Unlike coal, gas power generators can be turned on and off in a couple of minutes – providing the ultimate backstop in our energy grid.

Australia has benefited from the development of a liquefied natural gas (LNG) export industry through export revenue, royalties and taxation, job creation and economic development.

But a decade of policy failures under the former Coalition Government left Australia with supply shortfalls and surging gas prices – an environment that has led to the closure of facilities critical to Australia’s sovereign capability.

In 2022, during the global energy crisis that followed Russia’s illegal invasion of Ukraine, the Albanese Government acted, quickly recalling Parliament to shield Australians from surging international gas prices, and secured 644 petajoules of extra gas supply – all measures that the Coalition opposed.

Since then, the Albanese Government has continued to strengthen our energy security while remaining a reliable, trustworthy trading partner in our region and delivering overdue energy market reform.

This landmark reform will give gas producers and gas users the certainty they need to invest and enter long-term contracts underpinning domestic manufacturing. That investment leads to jobs and energy security for more Australians.

The domestic reservation will respect export contracts entered into before the Government’s announcement on 22 December 2025, ensuring exporters can continue to meet their full export commitments.

Australia is committed to remaining a reliable energy partner to our region.

Australia’s gas exports are critically important to the assurances we have received for future supplies of petrol, diesel and fertiliser.

The new Domestic Supply Obligation powers will be jointly administered by the Minister for Resources and the Minister for Energy and Climate Change, in coordination with the Minister for Industry and Innovation.

The Government will legislate the new domestic supply obligation and commence further targeted consultation on the final design details.