Australia's Manufacturers Demand 25% Gas Reservation for Domestic Market
Major Australian manufacturers, including BlueScope and Tomago Aluminium, are urging the Albanese government to reserve 25% of new gas production for domestic use to maintain affordable supply and support the Future Made in Australia policy. Concerns have been raised that a lower reservation volume could lead to price increases and supply uncertainties. The Australian Energy Market Operator has warned of potential gas shortfalls as early as 2029. Different stakeholders, including gas producers and industry groups, have voiced varying opinions on the proposed gas reservation scheme.
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Australia's largest manufacturers are demanding the Albanese government reserve 25% of new gas production for the domestic market to ensure affordable gas supply. The government proposed a reservation of 15-25% to address local supply concerns, but Manufacturing Australia argues for the higher figure, warning that insufficient reservations could undermine confidence and exacerbate supply issues.
The Australian Energy Market Operator has indicated potential gas shortages by 2029. Industry players have submitted feedback on the government's proposal, with some cautioning against market distortions.
AG&P LNG has proposed an Australian Gas Guarantee to secure capacity in the import terminal. Inpex has opposed being included in the reservation policy, citing limitations in increasing domestic supply. The debate continues as various stakeholders express differing perspectives on achieving a balanced gas market.
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