Australia Approves Domestic Gas Reservation Plan Requiring One-Fifth of New Output for Domestic Use

According to Jin10, Australia approved a controversial domestic gas reservation plan on May 19, requiring energy producers to reserve one-fifth of new output for domestic consumption. The measure aims to address an anticipated supply shortage on the country's east coast by year-end of the decade and protect domestic consumers from international price fluctuations.

Santos CEO Gallagher criticized the policy, saying it would lower prices short-term but damage investment and supply. Shell Australia Chair Vickers noted that Middle East conflicts highlight the world's dependence on oil and gas, and stressed Australia urgently needs increased natural gas production. The country is one of the world's largest liquefied natural gas exporters.