Australia announces natural gas reserve policy, mandating domestic supply retention from 2027

On May 7, Australian Minister for Climate Change and Energy Chris Bowen announced the details of a new gas reservation policy in Sydney, explicitly requiring that liquefied natural gas (LNG) exporters must set aside 20% of any new gas supply for the domestic market. The new policy will officially take effect on July 1, 2027, covering all newly signed gas contracts and spot transactions. Bowen acknowledged that this move is expected to stabilize domestic gas prices and create room for price declines, while also mitigating to some extent the pass-through impact of international gas price fluctuations on the Australian local market.