Federal Government announces gas reservation policy

The Albanese Government has this week announced its gas reservation policy, which will require gas exporters to supply between 15 and 25 per cent of gas produced to the Australian market.

It comes with the release of the Gas Market Review Report, which acknowledged that unrestricted exports linked Australian prices to world prices.

80 per cent of Australia’s gas is currently exported – including two thirds of gas produced on the east coast. This has tripled the cost of gas on Australia’s east coast over the last ten years.

Mark Ogge, Principal Advisor at The Australia Institute, said the announcement comes “after a decade of policy failure”.

“The Government has acknowledged there is no gas shortage and exports are the problem,” Mr Ogge said.

“This is an acknowledgement that the gas industry’s constant claim of a gas shortage was a lie, designed to force governments to support their unnecessary new gas export projects.”

On the policy, Mr Ogge said “the devil is in the detail”.

“(This announcement) is an acknowledgement that there is no gas shortage, and that excessive exports have driven up energy prices for Australians,” he said. 

“There is a long way to run on this and if the government caves into the gas industry again, it will join the long list of failed Australian gas policies.”

Mr Ogge also backed an idea from the Australian Council of Trade Unions, which suggested a 25 per cent tax on gas exports, saying it would “solve the problem immediately”.

“A 25 per tax on gas exports would solve the gas crisis,” he said.

“It would cut energy bills, ensure there is enough gas for Australian and also provide $17 billion annually for better housing, health care, education and childcare.”