Ministers for the Department of Industry, Science and Resources
The Albanese Labor Government is taking another step forward to secure more affordable gas for households, business and industry with the release of the Domestic Gas Reservation legislative package for consultation.
The Domestic Gas Reservation Bill 2026 will establish Australia’s first national Domestic Gas Reservation Scheme.
This delivers on the Government’s commitment to secure gas supply for Australians and put downward pressure on domestic gas prices, by requiring gas exporters to supply a portion of the gas they produce to the domestic market.
The Australian Government is reserving up to 20 per cent of gas exports for Australians, ensuring gas is more affordable and the domestic market is always modestly oversupplied.
Exporters could provide up to 200 additional petajoules of gas a year, ensuring more than enough secure gas along with domestic production to meet new manufacturing demands.
This is more than enough to avoid AEMO forecast possible shortfalls of up to 140 petajoules.
This is a landmark Labor reform that will place significant downwards pressure on price paid by Australian gas consumers.
The scheme ensures domestic customers can buy from a larger pool of gas, reducing the risk of tight market conditions driving price spikes, promoting long-term contracting and shielding them from global volatility.
The licence application process will commence from 1 January 2027, with the Domestic Supply Obligation to commence from 1 January 2028, to align with industry contracting cycles.
The Exposure Draft, released today, establishes a framework for how the reservation scheme is proposed to operate within a broader set of gas market reforms, including how costs will be recovered and the compliance and enforcement mechanisms available to the Regulator.
The Government received more than 140 submissions in response to the Reservation’s Draft Design Framework – from gas producers and exporters, retailers, large industrial users, trade partners and state and territory governments. The Exposure Draft package ensures more affordable gas is available for Australian gas users, and builds on design features proposed by the Government earlier this year.
Stakeholder feedback has been considered during the design of the legislation and market reforms to improve industry certainty and inform an Exposure Draft package that is predictable, transparent, and pro-investment while also delivering affordable, long term domestic gas supply.
The Domestic Gas Reservation Scheme exposure draft and consultation materials are available now on the Department of Industry, Science and Resources Consultation Hub.
Submissions will close on 24 September 2026. The Government welcomes further feedback to refine the draft legislation package before its proposed introduction to parliament later this year.
Quotes attributable to Minister for Climate Change and Energy Chris Bowen MP:
“For too long Australia has been in the perverse situation where despite being one of the world’s largest gas producers we had shortages and prices shocks at home.
"We’re fixing that – with a system that secures the gas we need and pushes prices down for households and businesses.
“Gas will be a crucial energy source as we transition to renewables, and cheaper gas can only help people and businesses to make the switch.”
Quotes Attributable to Minister for Resources Madeleine King MP:
“The Albanese Government is establishing the first national Domestic Gas Reservation Scheme because Australian households and businesses, quite rightly, expect to have access to affordable Australian gas.
“This scheme requires gas exporters to make a portion of the gas they produce available to our domestic market, securing the gas Australian consumers and industry need, putting downward pressure on domestic gas prices, supporting jobs across the country, and growing the economy.
“The Future Gas Strategy recognises that gas will remain an important part of Australia's energy mix and a critical partner to renewable energy through the transition to net zero.
“By ensuring more Australian gas is available here at home, while maintaining our position as a trusted energy exporter, we are delivering a balanced approach that supports households, industry and long-term economic growth.”
Quotes attributable to Minister for Industry and Innovation and Minister for Science Tim Ayres:
“Securing affordable gas for Australian manufacturing and heavy industry supports good jobs, stronger supply chains and Australia’s domestic industrial capability.
“A domestic gas reservation gives manufacturers and heavy industry access to the reliable and affordable energy they need to invest, produce and grow.
“Gas continues to play an important role for industry and putting downward pressure on prices will help manufacturers remain globally competitive, secure existing jobs and create new opportunities for Australian workers.”