business
East Coast Gas Producers Split Over National Reservation Rules
Australia Pacific LNG and Shell urged the federal government to apply a proposed 20 percent domestic reservation scheme equally to all three east coast LNG exporters. Santos' GLNG project could receive a temporary exemption or deferral under ministerial powers. Queensland officials asked to delay the policy.
Jul 9, 2:47 AM·1m read1 source
The Sydney Morning HeraldAudio version
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Australia Pacific LNG and Shell called for equal application of a proposed national gas reservation scheme to all three east coast LNG exporters. The companies submitted that any framework granting one exporter a carve-out or deferral would fail to deliver domestic supply. The proposed policy would require 20 percent of LNG exports from 2027 to be offered first to Australian buyers.
LNG, a joint venture involving Origin Energy, ConocoPhillips and Sinopec, stated that the rules must treat investors and trade partners equally. Shell joined the call for firm domestic supply commitments. Santos' GLNG project is a net withdrawer of domestic gas to meet export contracts.
The federal proposal contains no formal exemption for GLNG, but ministerial powers could allow temporary relief or deferral of contributions into the 2030s. Queensland officials submitted that the 20 percent target represents a significant intervention that could weaken investment signals and long-term supply response.
A Grattan Institute energy policy expert stated that Santos should be required to meet any domestic obligation by sourcing gas from elsewhere if needed. APLNG and the Shell-backed QCLNG venture together supply about 40 percent of the east coast domestic market.
