- Canberra’s proposed gas reservation scheme remains flawed and undermines future supply.
- The Crisafulli Government calls on Canberra to release evidence the scheme won’t adversely impact Queensland’s economy and threaten future gas supplies.
- Queensland has formally submitted its response to the Federal Government’s Domestic Gas Reservation Scheme warning the proposed scheme could impact regional jobs, investment and energy security.
The Crisafulli Government is backing the gas sector and calling for the Federal Government to address serious flaws in its proposed Domestic Gas Reservation Scheme before introducing new laws that threaten to undermine future gas supplies.
In a submission responding to the Federal Government’s Domestic Gas Reservation Bill 2026, Queensland warned against the focus on reallocating existing gas rather than encouraging new investment and supply.
The submission acknowledged improvements to the scheme, including a delayed commencement for exporter obligations and longer export license terms but reiterated any national scheme must foster investment, infrastructure and production needed to increase long-term supply.
The Crisafulli Government is seeking an independent review of market conditions by the end of 2027 to assess whether proposed legally binding obligations should commence on 1 January 2028.
Treasurer and Minister for Energy David Janetzki said Queensland supported affordable and reliable gas for Australian households and industry, but the Federal Government had not demonstrated that its proposal would achieve that.
“The Federal Government has not released the evidence underpinning key elements of the scheme, while critical regulations and implementation details remain unresolved,” Treasurer Janetzki said.
“A requirement to forcibly supply gas above actual demand could suppress prices below sustainable production costs, weaken investment signals and undermine the new supply needed for long-term affordability.
“Before this legislation proceeds, Canberra must release its evidence, consult meaningfully on the supporting regulations and proposed levy, and provide clear protection for foundational export contracts and joint venture arrangements.
“Queensland supplies nearly 90 per cent of the east coast market. Without Queensland, there is no domestic gas market.
“While we’re ready to work constructively on a framework that supports domestic users, encourages new supply and protects regional jobs, we can’t sign up to a scheme that leaves Queensland bearing a disproportionate share of the economic impacts.”
Queensland’s gas sector is fundamental to the State’s economy and national energy security, investing up to $4 billion annually, supporting 44,000 jobs and contributing $1.1 billion in royalties in 2025-26 and a forecast $1.9 billion in 2026-27.
The gas sector remains concerned that the draft laws do not fully reflect the Commonwealth’s stated policy intent or assurances provided during consultation.
