Australia gas reservation policy aims to fuel manufacturing recovery

Australia is implementing new regulations to reserve more gas for domestic customers, a move intended to support an onshore industrial revival. Starting next July, landmark regulations will require shippers of eastern Australian liquefied natural gas to divert up to 20 per cent of their export volumes to local homes and businesses.

This policy aims to mitigate the impact of the mid-2010s, when the expansion of LNG exports linked the domestic market to volatile global prices. Coogee Chemicals is considering reactivating its methanol plant in Laverton, which was placed on care and maintenance in 2016 due to soaring gas costs. Coogee chief executive Grant Lukey stated that the reservation policy “could create a renaissance in the manufacturing sector.”