The Australian government has accepted the findings of a comprehensive Gas Market Review and announced a series of reforms aimed at strengthening domestic gas supply security and improving the efficiency of the national gas market.
The review was undertaken jointly with the Department of Climate Change, Energy, the Environment and Water (DCCEEW) and examined the effectiveness of existing gas policies and regulatory frameworks.
Key focus areas included the Australian Domestic Gas Security Mechanism (ADGSM), the Heads of Agreement with east coast liquified natural gas (LNG) exporters, and the Gas Market Code.
The review also assessed opportunities to streamline regulation and optimise market transparency and efficiency.
The government’s objective was to ensure that the gas framework remains fit for purpose as Australia transitions toward a net zero emissions economy.
Public consultation and engagement with industry stakeholders helped inform the findings and final recommendations.
Following the review, the government confirmed it would implement wide-ranging reforms to provide long-term regulatory certainty and ensure the domestic gas sector supports both national energy needs and international commitments.
Central to these reforms is the development of a prospective gas reservation policy designed to secure sufficient domestic supply while continuing to support LNG export trade.
The proposed reservation scheme will require a portion of gas production to be dedicated to Australian users, including commercial, industrial, and household customers.
This measure is expected to help maintain stable and reliable access to gas across all sectors.
The policy is likely to be modelled on an export approvals approach, balancing domestic demand with Australia’s position as a major LNG exporter.
Details of the reservation scheme will be developed throughout 2026 in consultation with industry and trade partners.
A public consultation process will also be undertaken before the government finalises the policy design.
The reservation scheme is expected to take effect in early 2027, giving participants time to adapt to the new framework.
In addition to securing gas supply, the government outlined plans to enhance the way gas is bought and sold across Australia.
Measures will be introduced to improve market functionality and trade efficiency, ensuring that reserved gas is not only available but also accessible to end users at transparent and competitive prices.
These reforms mark a significant step in modernising the gas sector’s regulatory landscape.
By aligning market mechanisms with Australia’s long-term energy and climate goals, the government aims to balance domestic affordability and supply reliability with export market competitiveness.
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