Consultations open for potential federal gas reservation scheme

The federal government is seeking submissions from stakeholders on a prospective gas reservation scheme.

An issues paper on a possible scheme was released on Tuesday.  Gas reservation was explained as being part of a collection of “market and regulatory measures” aimed at an affordable, reliable supply to Australians. 

A reservation would involve a certain amount of the commodity set aside for sale at an affordable price to local users. WA does this for the equivalent of 15 per cent of export sales. 

Such a scheme has been ruled out by by federal governments of both sides until recently. It is currently being considered as part of the government’s “gas-led recovery” plans. 

Under consideration are:

• the effects of a national reservation scheme on domestic gas markets, the economy, trade and investment;
• approaches to gas reservation within Australia and overseas;
• market and regulatory frameworks that would support reservation.

“It is essential we consider all of the policy options available that could help to ensure Australian gas is working for all Australians,” said energy minister Angus Taylor in a release.

“Gas prices and security affects the productivity and competitiveness of Australian industry. We will work with industry and consider all feedback to ensure both gas producers and users can thrive.”

Submissions to the review are open until November 27 and more information can be seen at the department of industry’s website here.

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