Gas
Australia plans gas reservation scheme to lower power prices
Australian resources minister Madeleine King has stated the country will rely on gas for the foreseeable future.
Key points
- A national gas reservation scheme is expected to begin in January 2028.
- The policy will require gas companies to allocate 20% of exports for domestic use.
- The Australian Energy Regulator will receive powers to enforce a 110% projected demand target annually.
What happened
According to The Guardian, Australian resources minister Madeleine King announced that domestic industry will remain dependent on gas for the foreseeable future. Speaking at the National Press Club, King stated that a new national gas reservation scheme aims to reduce electricity prices for households and businesses.
The policy, scheduled to take effect in January 2028, will compel gas exporters to reserve 20% of their exports for the domestic market. The framework will empower the Australian Energy Regulator to ensure firms meet a target equivalent to 110 percent of projected annual demand, while replacing the existing domestic gas security mechanism.
Why it matters
King explained that the measure is designed to create a modest oversupply within the domestic system to exert downward pressure on costs. While the minister did not provide specific price estimates or a timeline for financial relief, she emphasised that gas remains essential for home heating, manufacturing, critical minerals processing, and supporting renewable energy integration.
“Right now, there is no replacement for gas,” King said, as reported by The Guardian.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
