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Australia Launches A$10 Billion Fuel Security Plan, Sets 20% Gas Reservation by 2027

The plan seeks to cut exposure to global price shocks.

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A government-owned fuel reserve of around a billion litres will be established thanks to a $10 billion fuel and fertiliser security plan included in Anthony Albanese’s budget next week. 
An LNG tanker berthed at the Karratha gas plant loading terminal in Western Australia.
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Overview

  • The Albanese government, which unveiled the package Wednesday, committed more than A$10 billion to lift mandatory fuel stocks by about 10 days and to buy a government-owned reserve of roughly one billion litres.
  • Energy Minister Chris Bowen on Thursday set out a law from July 2027 requiring major LNG exporters to reserve 20% for Australian users, with existing export contracts excluded and legislation still to pass.
  • Funding includes about A$3.2–3.7 billion to purchase the public stockpile and A$7.5 billion in loans, insurance and storage support so companies can hold more fuel, with government-owned barrels kept in private depots nationwide.
  • New targets aim for about 50 days of diesel and jet fuel and roughly 40 days of petrol to reduce the risk of regional service-station outages and keep freight, farming and flights running during future supply shocks.
  • Industry groups welcomed stronger reserves, the Opposition pushed for higher levels, and officials avoided firm price forecasts even as Australia remains below the IEA’s 90‑day standard and operates only two refineries.