---
title: "Australia Will Curb Ministerial Discretion in Its Gas Reservation Plan"
description: "Resources Minister Madeleine King plans to defend the export curbs as gas producers say the plan is already holding back investment."
author: "rews desk"
published: 2026-10-13T11:30:00Z
modified: 2026-10-13T16:03:17Z
url: https://rews.cc/a/australia-will-curb-ministerial-discretion-in-its-gas-reserv-424767
language: en
tags: ["energy", "infrastructure", "economy", "australia", "minerals", "business", "europe"]
publisher: "Rews (https://rews.cc)"
---

# Australia Will Curb Ministerial Discretion in Its Gas Reservation Plan

*Resources Minister Madeleine King plans to defend the export curbs as gas producers say the plan is already holding back investment.*

By rews desk · October 13, 2026 · https://rews.cc/a/australia-will-curb-ministerial-discretion-in-its-gas-reserv-424767

## In brief

- Madeleine King is to say the government will limit ministerial discretion over its domestic gas reservation scheme
- An industry blueprint plans a 10 percent oversupply of the east coast gas market, with a possible must-sell obligation
- Ms. King links affordable gas to processing critical minerals and rare earths in Australia
- Woodside and AGL executives said the plan is slowing investment and could reduce future supply
- The September draft caps the obligation at 20 percent of exports, aiming to cover 110 percent of forecast demand

Australia’s resources minister, Madeleine King, plans to say in a speech on Wednesday that the government will limit ministerial discretion over its domestic gas reservation scheme. The change is a concession to producers who have fought the export curbs for months.

The scheme could put exporters under a “must-sell” obligation to supply part of their production to Australian buyers. A blueprint sent to the industry last month sets out a plan to oversupply the east coast market by 10 percent. Ms. King is expected to tell the National Press Club that the policy will be one of the government’s “significant structural economic reforms” and will secure “fair prices,” [The Australian Financial Review reported](https://afr.com/companies/energy/labor-to-limit-discretion-over-gas-reservation-but-pushes-ahead-20261013-p6152x), citing an extract of the speech.

Her main argument is about minerals. “We need gas to process more critical minerals and rare earths here in Australia. Only gas can provide the sustained high temperatures needed at the right cost to process and refine them,” she plans to say. “We cannot have a critical minerals revolution here in Australia without a guaranteed supply of affordable gas.”

She’ll also make the case for exports. “A successful, peaceful energy transition relies on continued Australian exports of energy,” according to the extract. “We must continue exporting traditional commodities ... while our export markets still need them, and while our regional trading partners follow their important paths to net zero.”

![A pipeline branches from Australia to an industrial furnace with blue rocks and flames on the left and a tanker ship on the right.](https://rews.cc/img/e1f2c76f523326298666753180689ed0a5778db7.webp)

Producers at the newspaper’s Energy & Climate Summit in Sydney this week weren’t persuaded. Breyden Lonnie, the chief operating officer of Woodside Energy, said the company could even cut supply if prices fell below the cost of production.

“Mark my words: decisions are being made now around new supply opportunities, which, if the domestic gas price reduces on the east coast … it’s going to cost supply,” Mr. Lonnie said. “We won’t be getting additional gas in the market. And what we know is, long term, we’re short the gas supply, and that will inevitably lead to increase in gas prices.”

Damien Nicks, the chief executive of AGL Energy, which buys gas, said on Tuesday that the long drafting process had already slowed investment. “What we see in the market right now is those producers are pulling right back. We’re not seeing the deals we used to see. We’re not seeing those contracting,” he said. “There is uncertainty in this market.”

The plan has already shifted once. In May, the government said producers would have to sell 20 percent of their exports to Australian users, [ABC News reported](https://www.abc.net.au/news/2026-05-07/east-coast-gas-reservation-policy-announced-to-avert-shortages/106651532). The exposure draft released on Sept. 10 replaced that fixed share with an annual obligation to cover 110 percent of forecast domestic demand, capped at 20 percent of exports, [according to the ABC](https://www.abc.net.au/news/2026-09-10/labor-gas-reservation-back-down-santos-chris-bowen/107138672).

![A cream outlined hourglass with dark blue caps holds gold coins above a turquoise flame against a bright blue background.](https://rews.cc/img/2d59a00f8b5669d953526839e4eaed9fb7e4bacd.webp)

Australian Energy Producers, the industry’s lobby group, said that draft contained sensible changes, including “reducing ministerial discretion,” but that “significant problems with the proposed design remain,” [according to its statement](https://energyproducers.au/media/latest-news). The Australian Energy Council puts the 10 percent margin, which the government calls modest, at around 50 petajoules, [a volume it calls material](https://energycouncil.com.au/domestic-gas-oversupply-how-much-is-enough/).

The government hasn’t put a new tax on gas exporters. Before the last budget, a campaign run largely on social media pushed for a windfall tax, and the government decided against one as conflict in the Middle East deepened fears about energy security. Producers still worry the idea could come back.

Balaji Krishnamurthy, the chief executive of Chevron Australia, went after the people backing a 25 percent levy on gas export revenues. “Let’s call them for what it is: they want to end the gas sector,” he said.

Big gas users want the reservation. Marghanita Johnson, the chief executive of the Australian Aluminium Council, said a well-run scheme could help the country’s smelters move off coal power.

“Give us the rules, and we will go forth and work out a way to make a commercial project and bring new gas to the market,” Ms. Johnson said.