Australia poised to require gas producers to supply domestic market

Summarised from 2 outlets · Updated 29 Oct, 00:44 · Archive

Australia's government plans to require gas producers to set aside 20 per cent of annual exports for domestic consumers.

Australia's government is set to pass a domestic gas reservation scheme requiring gas producers to set aside 20 per cent of their annual exports for Australian consumers. Energy Minister Chris Bowen said the change will be rammed through the federal lower house by Labor's parliamentary majority on Thursday. He described the reform as 'twenty years overdue' and claimed Australia is 'the last country with a gas industry in the world without an effective reservation policy'.

The scheme aims to create a modest oversupply in the domestic market to help lower electricity prices and support manufacturing. The government has shifted its focus from electricity bills to manufacturing competitiveness in seeking stakeholder support. Liberal frontbencher Kevin Hogan signalled the scheme would meet little coalition resistance, suggesting it may also pass the Senate, though he noted concerns about ensuring new gas comes online in Western Australia.

The Greens have opposed the policy, with leader David Shoebridge arguing it represents an unneeded windfall for gas companies that encourages environmental harm and distracts from stricter taxation of the resources sector. He said the scheme 'may potentially promote some of the most damaging projects'.

How it is being reported

• Gas supply overhaul looms as road-blocks disintegrateA plan to oversupply the Australian gas market is poised to become reality as support solidifies but environmental and industry concerns linger.The West Australian · 29 Oct, 00:14
• Gas supply overhaul looms as road-blocks disintegrateA plan to oversupply the Australian gas market is poised to become reality as support solidifies but environmental and industry concerns linger.Perth Now · 29 Oct, 00:14

In this story: Australia · Chris Bowen · Kevin Hogan · David Shoebridge · Labor · Liberal · Greens · Western Australia

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