Government mandates Shell, Santos, and Origin Energy to reserve one-fifth of output for domestic use starting July 2025.
Australia will require energy companies to reserve 20% of their natural gas production for the domestic market to prevent east coast supply shortages. The rule takes effect in July 2025 and targets Shell, Santos, and Origin Energy, which operate LNG facilities in the region.
The mandate applies to spot market sales and future contracts but exempts existing long-term export agreements. East coast gas shortages have driven prices higher in recent years, prompting regulatory intervention.
Shares of affected companies showed mixed reactions, with Santos and Origin Energy slightly lower in early trading while Shell remained stable.