Shell slams Australia's domestic gas reservation as heavy-handed policy

Australia's parliament will soon consider new legislation to enforce a domestic gas reservation requirement as part of the government's broader energy policy agenda. The policy is designed to ensure sufficient gas supplies remain available for Australian consumers and businesses, addressing concerns about energy shortages and elevated power prices across the country.

Under the proposed framework, energy companies would be required to reserve a portion of their gas production for the domestic market rather than prioritising export commitments. Policymakers argue the measure is necessary to stabilise energy supplies and help bring down costs for households and industries struggling with elevated electricity and gas bills.

However, the proposal has drawn strong pushback from international energy companies operating in Australia. Shell has been particularly vocal in its criticism, characterising the reservation policy as a "sledgehammer" approach that fails to account for the complexities of gas markets and long-term investment planning. The company has warned that such interventions could discourage future energy sector investments in Australia.

The government maintains that balancing export interests with domestic supply needs is essential for economic stability and cost-of-living relief. The legislation is expected to proceed through parliamentary debate in coming weeks, with energy policy remaining a contentious issue in Australian politics.