Coalition demands changes to domestic 20% gas reservation plan
Key points
- Coalition and Greens lawmakers formally rejected Labor's draft legislation requiring major gas exporters to reserve up to 20% of fuel for domestic use.
- Local gas producers warned the proposed 110% market supply mandate risks lowering investment in future domestic energy supply.
- The federal government is seeking crossbench support to pass the market reservation laws ahead of the targeted January 2028 start date.
The federal government faces legislative delays after the Coalition rejected draft laws mandating gas exporters like Beach Energy (ASX:BPT) reserve up to 20% of export volumes for domestic supply.
The draft rules seek to prevent projected fuel shortfalls by the end of the decade, whereas smaller producers argue that capping market prices will reduce investment in new exploration.
“Forcing exporters to oversupply the domestic market undercuts the companies that have always supplied it,” said Beach Energy Chairman Ryan Stokes.
The draft regulations include a mechanism requiring producers to supply 110% of local gas demand ahead of a scheduled start in January 2028.
Following the announcement, the Beach Energy share price was unchanged at $0.90.
The Albanese government initially proposed reserving a flat 20% of gas exports in May 2025 before softening the rule to an assessment-based cap in September.
Opposition lawmakers maintain they will only negotiate if the government removes Western Australia from the scheme, scales back ministerial intervention, and eliminates mandatory oversupply targets.
