Australia brings forward east coast gas reservation start date
Australia's federal government has announced changes to its east coast gas reservation policy, requiring Queensland LNG ventures to set aside 20% of export volumes for Australian users from July next year.
The scheme is intended to avert looming east coast gas shortages and put downward pressure on domestic prices.
Energy Minister Chris Bowen said the measure would create a modest oversupply in the east coast market.
The policy applies to Queensland's three LNG ventures and is being introduced as the biggest intervention in the market in more than a decade.
The government said it would ensure Australians were no longer exposed to international market pressures.
Officials said the requirement will force producers to sell that 20% to Australian users, with the scheme modelled on a reservation system already operating in Western Australia.
The government also said relevant embassies were briefed before the announcement.
The move comes as gas prices are currently around $12 a gigajoule, although Mr Bowen declined to say how much the new scheme might reduce them.
He also rejected suggestions the policy would flood the market or make smaller developments uneconomic.
