What specific change did Australia make to its East Coast gas reservation rule for LNG exporters?

Australia softened its proposed East Coast gas reservation rule by shifting from a mandatory fixed 20% reservation requirement to a flexible cap of 'up to a fifth' (i.e., up to 20%) of production, allowing exporters to reserve between 15% and 25% as previously floated in December — a move that grants greater operational discretion while still ensuring domestic supply security.

How does the revised gas reservation policy aim to address potential domestic shortfalls on Australia's East Coast?

The revised policy enables LNG exporters to provide up to 200 additional petajoules of gas per year — exceeding the Australian Energy Market Operator’s forecast shortfall of up to 140 petajoules — thereby ensuring the domestic East Coast market remains 'modestly oversupplied' and gas more affordable, according to Energy Minister Chris Bowen.

Australia softens East Coast gas reservation rule for LNG exporters

Sep 9, 2026

Australia relaxed its East Coast gas reservation rule for LNG exporters, replacing a fixed 20% quota with flexible production limits to ensure domestic supply. Major projects by Shell, Santos, and Origin Energy will be impacted by the policy change.

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Australia softens East Coast gas reservation rule for LNG exporters

Australia softens East Coast gas reservation rule for LNG exporters

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