On 27 May 2026, the Commonwealth Government published the new Domestic Gas Reservation Scheme. Initially proposed with an east coast focus, this will now operate on a national basis. Under the DGR Scheme, LNG exporters will be required to supply domestically an amount equivalent to 20% of their LNG export volumes. The Government’s objective is to reduce the risk of domestic gas shortages, place downward pressure on gas prices, and reduce exposure to international LNG market volatility.
Existing LNG export contracts entered before 22 December 2025 are grandfathered, meaning that the impact is expected to be gradual.
The DGR Scheme is a significant reform for the east coast, where it should improve domestic gas availability. For Western Australia, the impact is expected to be relatively limited because WA already has its own long-standing Domestic Gas Reservation Policy, which generally requires LNG projects to reserve 15% of gas for the WA market.
The DGR Scheme is legislated to commence 1 July 2027.