Labor pushes gas reservation scheme despite Greens criticism and WA policy differences
What happened
A plan to mandate a domestic gas reservation scheme is likely to become law, requiring producers to set aside 20 per cent of their annual exports for Australian consumers. The policy, originally pitched to lower electricity prices, is now being framed as a benefit to manufacturing. The Greens criticized the scheme, arguing it encourages environmental harm and provides an unneeded windfall for gas companies.
Why it matters
The scheme will provide a modest oversupply of gas to the Australian market. Labor stated that the policy is intended to put Australian industry on a better competitive footing, noting that Australia is currently the last country without an effective gas reservation policy.
Policy discussions were held regarding the National Gas Reservation Scheme and its integration with existing Western Australia production policy.
Who's involved
- LaborLabor is driving the domestic gas reservation scheme.
- GreensGreens has criticized the gas policy as encouraging environmental harm.
- Western AustraliaWestern Australia maintains its own independent reservation policy.
- federal governmentThe federal government is implementing the new gas reservation scheme.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Woodside EnergySpeculative
Woodside Energy might face changes to its export obligations due to the federal scheme.
- Western AustraliaSpeculative
Western Australia might see changes in its resource revenue as the federal scheme challenges its existing policy.
- ActewAGLSpeculative
ActewAGL might see changes in operational costs or consumer demand as the scheme aims to lower electricity prices.
Keep exploring
The entities involved
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Greens
South Tyrol political party
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Labor
company in Rome, Italy
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Western Australia
state of Australia