The Australian Government and state and territory governments should consider a coordinated national approach to gas and hydrogen reservation for domestic use. This would ensure this country's future demands are met and provide equitable, affordable access to future fuels for all Australians.
Sharp increases in gas prices along the Australian east coast recently have shown the importance of ensuring domestic needs are considered. After the east coast gas market was opened to global prices, the price of wholesale gas doubled. It rose from below $5 per gigajoule in 2009 to over $10 per gigajoule in 2016. Meanwhile, gas prices declined in Western Australia,84 primarily because it had a domestic gas reservation policy.85
It is important that, as new fuel supplies become available, national priorities for access to internationally competitive energy are considered at the same time as export potential. However, any national gas reservation scheme will need to operate without affecting state governments' sovereign powers to manage resources.
The scheme would also need to complement existing policies, such as Victoria's prioritisation obligation for onshore gas, which requires any gas produced in Victoria to be prioritised for the domestic market.