The Australian Labor Party's (ALP) proposed domestic gas reservation scheme, announced in December 2025, has been met with significant opposition from industry stakeholders who argue that the policy could have detrimental effects on investment and energy reliability. By requiring liquefied natural gas (LNG) exporters to reserve 20% of their production for the domestic market, the government aims to secure domestic gas supplies and alleviate rising energy costs. However, critics contend that the scheme may lead to unintended negative consequences.
**Impact on Investment**
Major gas producers, including Santos, Shell, and Woodside Energy, have expressed concerns that the gas reservation scheme could undermine their business models. Santos CEO Kevin Gallagher warned that being compelled to sell gas at uneconomic prices domestically could destroy business models. Shell Australia Chair Cecile Wake cautioned that the proposal might