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APLNG Demands No 'Leave Pass' for Santos as Gas Reservation Rules Are Finalised

How ministerial exemptions are written will decide whether the federal 20% LNG export reservation secures domestic gas or lets some exporters avoid contributions.

Overview

  • APLNG, backed publicly by Shell, told the government it will only back the 20% east-coast LNG export reservation if the rules apply equally and do not grant carve-outs to any exporter.
  • The draft framework gives ministers powers to approve alternative supply arrangements, and industry reporting says those powers could be used to delay or exempt Santos’ GLNG from obligations.
  • The Queensland government has urged the federal government to defer the policy, arguing the 20% requirement is a major intervention that could weaken investment signals and long-term supply.
  • Independent experts and the Australian Workers’ Union say the reservation will fail if variations or 'leave passes' are allowed, and they call for firm, uniform obligations on all exporters.
  • Most east-coast domestic gas comes from Queensland projects and long-term LNG contracts send much supply overseas, so the final rules will shape domestic prices, future investment and Australia’s trade ties.