Government sets up fight with Santos over gas reservation plan
The Australian government has proposed a gas reservation policy that mandates exporters supply 20% of their liquefied natural gas (LNG) exports to the domestic market. This plan has sparked controversy, with industry leaders warning it could harm investment and displace local producers. The government argues that the policy will help reduce domestic gas prices and ensure a reliable supply.
- ▪The federal government has introduced a draft framework for a gas reservation policy.
- ▪Exporters will be required to supply 20% of their LNG exports to the domestic market each year.
- ▪Industry leaders have expressed concerns that the policy could undermine investment and damage Australia's reputation as a gas supplier.
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| Original publisher | ABC News (Australia) |
| Canonical URL | https://www.abc.net.au/news/2026-05-26/government-sets-up-fight-with-santos-over-gas-reservation-plan/106721410 |
| Publication time | Mon, 25 May 2026 23:09:07 +0000 |
| Retrieval time | 2026-05-25T23:22:40.543Z |
| Last seen | 2026-05-25T23:22:40.543Z |
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Opening excerpt (first ~120 words) tap to expand
Government sets up fight with second-largest gas exporter over domestic reservation planBy energy reporter Daniel MercerTopic:Oil and GasTue 26 May 2026 at 9:09amTue 26 May 2026 at 9:09amTue 26 May 2026 at 9:09amMadeleine King says the reservation will put downward pressure on domestic gas prices. (ABC News: Matt Roberts)In short:The federal government has set up a fight with one of Australia's largest oil and gas companies, Santos, over their gas reservation policy.A draft framework released on Monday outlines a plan for a policy that would force exporters to supply the domestic market with 20 per cent of their exports each year.What's next?The gas lobby is warning the policy would displace domestic producers, undermine investment and damage Australia's…
Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).