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Australia to Extend LNG Reserve Mandate to Existing Contracts

Australia's domestic gas reservation requirement will now apply to all liquefied natural gas projects and existing contracts, tightening supply obligations for producers. The government's draft policy mandates that LNG exporters reserve one-fifth of production for local consumption. Previous agreements signed before May 22, 2025, will be honored only if producers cannot meet the 20% domestic allocation requirement without breaching existing deals. The move intensifies pressure on operators to source additional gas supplies domestically. Industry representatives have strongly opposed the expansion, warning the policy could discourage future investment and undermine Australia's standing as a dependable export partner in global energy markets.