The Aporia
Resources Minister Madeleine King introduced legislation on October 12 that would force gas producers to reserve 20% of their exports for domestic use starting from January 2028. The scheme aims to create a "modest" oversupply in the domestic market, thereby reducing wholesale gas prices. However, King declined to specify how much this would lower prices or when households and businesses could expect financial relief. The Coalition has indicated it will work with the government on passing the laws but questions remain about future supply assurance. Western Australia's peak resources lobby is wary that the federal policy might undermine the state’s existing 15% reservation system, which has helped keep local energy prices lower than in eastern states.
The national gas reservation scheme will force gas companies to set aside 20% of exports for domestic use, and is expected to come into effect from January 2028.
It will give the Australian Energy Regulator the power to force companies to meet a target of 110% of projected demand each year.
Canales, S. B. (2026, October 14). Australian industry reliant on gas for ‘foreseeable future’, resources minister tells press club. The Guardian. https://www.theguardian.com/australia-news/2026/oct/14/australia-reliant-on-gas-for-foreseeable-future-madeleine-king-press-club
Canales, Sarah Basford. “Australian industry reliant on gas for ‘foreseeable future’, resources minister tells press club.” The Guardian, 14 Oct. 2026, https://www.theguardian.com/australia-news/2026/oct/14/australia-reliant-on-gas-for-foreseeable-future-madeleine-king-press-club.
Canales, Sarah Basford. “Australian industry reliant on gas for ‘foreseeable future’, resources minister tells press club.” The Guardian, October 14, 2026. https://www.theguardian.com/australia-news/2026/oct/14/australia-reliant-on-gas-for-foreseeable-future-madeleine-king-press-club.
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