Australia’s government plans to mandate LNG producers to set aside 15-25% of their output for the domestic market by 2027, aiming to avoid shortages. Despite industry opposition, the move builds on the Australian Domestic Gas Security Mechanism approved in 2017.

Southern Australian states urged for more domestic gas supply, fearing shortages. The country’s competition regulator warned of a potential deficit by year-end. The government’s push for LNG export curbs reflects ongoing concerns about supply stability and the need to boost local gas production.

Climate change minister Chris Bowen supports the proposal to ensure more affordable gas for Australian users. The curbs would only apply to new LNG export contracts, not existing commitments. Australia, the world’s third-largest LNG exporter, faces challenges as producers reduce production expansion investments in response to the mandates.

Read more at Yahoo Finance: Australia to Mandate LNG Export Curbs to Ensure Local Supply