What is the key requirement of Australia's new LNG gas reservation policy for the east coast, and when does it take effect?

The Australian government requires LNG exporters on the east coast to reserve 20% of their natural gas for the domestic market to avert supply shortfalls and help lower energy bills; the scheme will apply from July next year and replace existing gas market interventions.

Which companies and projects are directly affected by the new 20% gas reservation requirement, and how does the government clarify its scope regarding existing contracts?

Three liquefied natural gas export projects on the east coast operated by Origin Energy (ORG.AX), Shell (SHEL.L), and Santos (STO.AX) will be affected; the scheme applies to prospective contracts and the spot market but will not affect existing contracts.

Australia Requires LNG Exporters to Reserve 20% of Gas for East Coast Market

May 6, 2026

Australia mandates LNG exporters reserve 20% of gas for the domestic east coast market starting July next year, impacting Origin, Shell, and Santos projects to stabilize local supply and prices.

reuters

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