Overview
- Cabinet has not finalized the scheme, with a high-level announcement expected next week followed by a consultation period, according to government and industry sources.
- Options under active consideration include requiring the three Queensland LNG exporters to supply set volumes domestically in exchange for export permits or imposing domestic supply obligations on all producers.
- The government is weighing a complementary move to act as a group buyer of gas and on-sell to selected manufacturers at discounted prices to stave off factory closures.
- Unions and large energy users are urging immediate reservation of uncontracted gas and sustained price relief, warning a new-projects-only policy would not bring down costs quickly.
- Ministers have reassured partners that contracted LNG deliveries will be met, as market warnings point to a potential east coast shortfall by 2028 and possible tightness in NSW and Victoria sooner.