Australian Energy Producers are set to recommend the introduction of a prospective gas reservation policy as part of a comprehensive strategy aimed at bolstering domestic gas supply and providing greater certainty for both producers and users.
This proposal will form a key component of the organisation’s submission to the Gas Market Review, with the aim of shifting Australia’s gas sector away from a pattern of temporary fixes and market interventions toward long-term, sustainable solutions.
Chief Executive Samantha McCulloch emphasised the importance of collaboration in ensuring energy security, stating: “The government’s Future Gas Strategy makes it clear that natural gas will remain critical to Australia’s energy security through to 2050 and beyond.”
She added: “This requires a strong, stable and competitive east coast gas market that delivers more gas when and where it’s needed, while providing certainty for existing and future investment.”
McCulloch argued that a well-designed, prospective reservation policy — connected to newly developed supply — could support a more competitive and resilient domestic market, but stressed that such a policy must be backed by meaningful action to address immediate supply pressures.
“This should include reforms to encourage more investment, streamline approvals, remove reporting duplication, and facilitate expanded gas pipeline and storage capacity,” said McCulloch.
“Actions must also support a robust LNG sector which goes hand-in-hand with a well-supplied domestic market.”
Highlighting the pivotal role of Queensland’s gas exports, McCulloch said: “A strong LNG sector was critical for Australia’s energy security, as Queensland’s gas exports will continue to underpin investment in new gas supply and provide flexibility for the domestic market.”
She continued: “Australia’s abundant natural gas resources have underpinned decades of economic growth, providing generations of Australians with reliable and affordable energy.
“With the right policy settings, we can encourage the investment needed to grow the market and ensure ample gas is available to meet Australia’s long-term energy demand and remain a reliable energy partner in our region.”
McCulloch concluded with a call for industry-government collaboration: “Industry stands ready to work with governments and energy users to safeguard Australia’s future energy needs, put downward pressure on prices and ensure Australia’s vast energy resources remain a major competitive advantage for our economy.”
The organisation’s recommendations include a three-pronged approach to ensuring reliable and affordable supplies:
- Pursuing gas market reforms for long-term supply reliability and affordability.
- Establishing a prospective east coast gas reservation policy linked to new supply, which is market-oriented, flexible, and minimises sovereign risk.
- Sunsetting current regulatory instruments — including the Gas Market Code, Heads of Agreement, and Australian Domestic Gas Security Mechanism — in parallel with market reforms.
Australian Energy Producers also recommend launching a sustainable exploration program, fast-tracking “development ready” gas supply, increasing pipeline and storage capacity, and streamlining project approvals.
Additional steps include improving market efficiency by harmonising reporting and simplifying short-term market operations.
The association underlines its commitment to working with federal, state, and territory governments, as well as industry stakeholders, to ensure the east coast gas market reforms are both robust and enduring — future-proofing Australia’s energy supply well into the coming decades.
