Policy & Regulation

Queensland pilots gas reservation as LNG ramps up

Reserving gas acreage for domestic consumption may be the only way to solve the supply crunch in eastern Australia’s gas market Reserving gas acreage for domestic consumption may be the only way to solve the supply crunch in eastern Australia’s gas market.
By Sally Bogle 9 February 2017 0 23909
A gas well in the Cooper Basin. Eastern Australia is suffering a supply crunch. (Beach Energy)

Policymakers in Queensland are rallying to boost gas supplies for local users before increased amounts of exports tighten the eastern Australian market. Regional prices are climbing as three new LNG projects ramp up their exports and producers choose international buyers over local customers.

In an attempt to boost supply, the Queensland government has announced it will set aside 5,800 hectares in the Surat Basin for gas exploration, with all the gas produced there to be marketed to local users only. It is the first time such...