National gas policy must recognise regional differences

Australia does not have one uniform gas market, and national policy must recognise the different conditions in each region.

The Australian Government has released exposure draft legislation for a national Domestic Gas Reservation Scheme.

DMBG welcomes the move to make 20 per cent the maximum rather than an automatic obligation, calibrate the amount to forecast demand, and recognise existing contracts, reservation arrangements and infrastructure constraints. The domestic supply obligation would now commence on 1 January 2028.

In its earlier submission, DMBG sought a time-limited grandfathering arrangement for the emerging Beetaloo Basin until 2040, subject to periodic review, to recognise the significant investment required in infrastructure necessary to support commercial production becoming established.

The exposure draft addresses some of those concerns, but it does not provide an express time limited exemption for the Northern Territory or the Beetaloo Basin. The Government’s own explainer says east-coast and NT LNG exporters would supply the NT and east-coast markets. The practical treatment of Darwin export facilities and future Beetaloo-linked LNG therefore requires close examination.

Secure and affordable domestic gas matters. So does creating the right environment to support investment in new supply, pipelines, downstream industry and Territory jobs. The final framework must achieve both.

DMBG is reviewing the exposure draft ahead of consultation closing on 24 September.