While the policy may support higher global LNG prices, concerns remain about how much additional gas the domestic market can absorb. The scheme also risks affecting government revenues, as LNG is a key export earner alongside iron ore, gold, and coal. The license application process will begin in January 2027, with domestic supply obligations starting in 2028.
October 9, 2026
Australia to Finalize Plan to Retain More LNG Domestically
Australia will finalize a plan to require LNG producers to reserve up to 20% of their output for local markets, aiming to address domestic shortages.
Impact
The policy is expected to support global LNG prices amid reduced Qatari supply, though domestic absorption capacity remains a key uncertainty.