Australia to reserve up to 20% of gas for local use

Australia will introduce legislation to require gas exporters to reserve up to 20 percent of export volumes for domestic customers from 2028, as global liquefied natural gas prices rise.

Prime Minister Anthony Albanese's Labor government says the reservation scheme is intended to secure gas for Australian homes and businesses at a fair price.

Resources Minister Madeleine King is due to outline the final form of the plan in Canberra on Wednesday after feedback from gas companies and trade partners including China and Japan.

The domestic supply obligation would vary from year to year depending on demand. The scheme aims to provide Australia's east coast cities, where most of the population lives, with 110 percent of forecast gas requirements.

An advance copy of King's speech said planned changes include limiting ministerial discretion over the supply obligation to make the rules more transparent and preventing loopholes.

King is also expected to defend Australia's gas industry, saying gas is needed for high-temperature refining of critical minerals and by Asian countries as they pursue net zero emissions. Pacific Island countries at risk from rising seas have urged Australia to stop expanding gas and coal projects.