Canberra, Dec 22 (NationPress) The Australian government declared on Monday its intention to introduce legislation mandating gas exporters to allocate a share of their supply for the domestic market.

Minister for Climate Change and Energy Chris Bowen stated in a press conference in Canberra that these laws, projected for introduction to the federal parliament in 2026, will ensure a stable supply of liquefied natural gas (LNG) for Australia and help lower prices.

According to Bowen, the legislation will be shaped through consultations with the gas industry, international stakeholders, and communities, requiring exporters to reserve between 15 and 25 percent of the LNG sourced in Australia for domestic consumption, as reported by Xinhua news agency.

“Most Australians believe that they should have priority access to resources beneath their land,” Bowen emphasized.

As one of the world’s largest LNG exporters, Australia faces a forecasted supply shortfall in 2026 for its southern and southeastern states, as per a report by the Australian Competition and Consumer Commission.

Bowen has already informed his counterparts in Asian countries such as South Korea, Japan, and Singapore, who are significant buyers of Australian gas, regarding this policy.

A report from the Australia Institute earlier in March indicated that the majority of gas exports have resulted in increased prices for both households and businesses in Australia, while applauding the government’s recent commitment to prioritize domestic supply.

“The more gas exported, the faster Australia's reserves deplete, which leads to higher energy costs for households and businesses,” stated Richard Denniss, Executive Director at the Australia Institute.

“A straightforward strategy to guarantee adequate gas supply and affordable prices for Australians is to limit exports,” he added.

Australia has ample gas resources, as affirmed by recent government statements, according to the Australia Institute.

Multinational gas export companies already manage 80 percent of Australia's gas and hold nearly all of the country's gas reserves, which they argue is detrimental to Australians.

“Predominantly foreign-owned gas corporations account for 80 percent of Australia’s gas exports, including 70 percent from the eastern states, 90 percent from the west coast, and almost 100 percent from the Northern Territory,” the institute noted.

“These companies receive 56 percent of the gas they export without paying royalties and have never contributed to the Petroleum Resource Rent Tax,” it added.