Domestic Gas Reservation Bill 2026

Milton Dick

I once again remind all members that, once I give the instruction to lock the doors, that is the instruction not to enter the chamber. If this continues—there have been some close calls—I will continue to remove members. I remind all members that, once I say, 'Lock the doors,' that means, even if the door is not closed, do not enter the chamber. The question now is the amendments circulated by the honourable member for Mackellar be agreed to.

Member for Mackellar's circulated amendments—

(1) Clause 3, page 3 (line 2), omit "liquefied natural gas.", substitute "liquefied natural gas; and".

(2) Clause 3, page 3 (after line 2), after paragraph (c), insert:

(d) to achieve these objects in a way that does not jeopardise the achievement of Australia's greenhouse gas emissions reduction targets.

(3) Page 4 (after line 13), at the end of Division 1, add:

4 Australia's greenhouse gas emissions reduction targets

(1) This section applies:

(a) to a Minister (the relevant Minister), in relation to the exercise of powers, and the performance of functions, by the relevant Minister under, or in relation, to this Act; and

(b) to the Regulator, in relation to the exercise of powers, and the performance of functions, by the Regulator under, or in relation, to this Act.

(2) The relevant Minister and the Regulator must take all reasonable steps to ensure that the exercise of the powers, and the performance of the functions, does not result in this Act operating in a way that jeopardises the achievement of Australia's greenhouse gas emissions reduction targets.

(4) Clause 9, page 8 (after line 28), after the definition of Australian territory, insert:

Australia's greenhouse gas emissions reduction targets has the same meaning as in the Climate Change Act 2022.

(5) Clause 45, page 65 (lines 10 to 11), omit "at least 20 regulated periods", substitute "no more than 10 regulated periods".

(6) Clause 47, page 67 (lines 28 to 33), omit subclause (4) (not including the note), substitute:

(4) The expiry day must be the last day of a regulated period, where that regulated period is no later than the tenth regulated period beginning on or after the day the licence came into force.

(7) Clause 52, page 72 (lines 15 to 19), omit all the words from and including "where that regulated period is:" to the end of subclause (5), substitute "where that regulated period is no later than the tenth regulated period beginning after the initial expiry day.".

Sophie Scamps

I rise to speak to my amendments to the Domestic Gas Reservation Bill 2026. These are relatively straightforward amendments that seek to improve the operation of the scheme and ensure it remains responsive to changing circumstances over time. The first amendment would limit LNG export licences to a maximum term of 10 years, rather than allowing licences to be issued for periods of 20 to 50 years. This amendment reflects recommendations from stakeholders including Climateworks and the Institute for Energy Economics and Financial Analysis. Australia's gas market will not look the same in 10, 20, 30 or 50 years as it does today. We know the LNG export sector is projected to decline over the coming decade, including under assumptions outlined in the government's Future Gas Strategy. Given the uncertainty, it makes sense to periodically reassess export licences rather than lock in arrangements for several decades at a time.

A 10-year licence period would reduce the risk of government needing to intervene to amend or revoke long-term licences as domestic gas market conditions, reserve estimates or emissions policies change. It would also allow consideration of the impact of proposed exports on Australia's emission reduction targets as circumstances and policy settings evolve. Importantly, it would provide a clear and predictable review process, allowing licences to expire and be reassessed rather than relying on governments having to intervene ad hoc if circumstances change significantly.

At the same time, the amendment would continue to provide certainty for industry and LNG export contracts. Most east coast LNG sale agreements are due to expire by 2036, and there are currently no new major LNG export projects under development. The amendment would also ensure there is an opportunity to periodically assess whether licence holders remain fit and proper entities to hold an export licence.

My second amendment would make clear that the reservation scheme should operate consistently with Australia's emission reduction commitments. Specifically, it would add an object to the act requiring that its objectives be achieved in a way that does not jeopardise Australia's greenhouse gas emission reduction targets. It would also require the minister and regulator to take all reasonable steps to ensure decisions made under the act do not undermine achievement of those targets. Decisions made under the gas reservation scheme should take into account Australia's existing emissions reduction commitments, and measures designed to improve domestic gas supply should not have unintended consequences for those objectives.

These amendments reflect recommendations made in the ongoing inquiry into this bill and would, in my view, strengthen the bill in a practical and sensible way. I commend the amendments to the House.

Madeleine King

I thank the member for Mackellar for her engagement on this package of bills. We all want, and agree that there should be, an orderly and ambitious energy transition, and that's why the Albanese Labor government has legislated emission targets; reformed the Safeguard Mechanism; and published the Future Gas Strategy, which mapped out the role of Australian gas in the energy transition and, of course, the transition of our whole region and our regional trading partners. We have also invested heavily in electrifying homes and installing batteries, with record take-up right around the country, and we've invested in building renewables at record rates.

The Domestic Gas Reservation Scheme will ensure that Australians can still access affordable gas while they still need it. Five million homes in this country still rely on gas for heating; that's especially the case in Victoria and here in the Australian Capital Territory. They also rely on gas for cooking and hot water. Cheaper gas prices will help some industries decarbonise. For example, decarbonising steel production involves switching from coal to gas.

The bills do include demand calibration to ensure gas prices are lower but do not sink to levels that would undermine, in particular, the economics of renewable energy and energy storage products or further undermine investment in other projects. Additionally, renewable gases and demand reduction will be able to be used to equip domestic supply obligations under the reservation. Together, these features ensure affordable, secure gas supply is achieved in a way consistent with our net zero and renewable energy ambitions.

The member's amendment also proposes limiting export licences to a maximum of 10 years.

It's important to our economy and to our country's future that Australia does remain a reliable trade and investment partner, so, in designing our domestic gas reservation scheme, the government has sought to balance protecting domestic supply while maintaining investment certainty and supply to nations that absolutely depend upon our country's energy exports for their long-term energy security. The long-term export licences within the regime provide the long-term regulatory certainty that is key to attracting investment to this country and to ensuring we have a energy-secure region. For these reasons, while I appreciate the input, the government will not be supporting the amendment.

Milton Dick

The question is the amendment moved by the honourable member for Mackellar be agreed to.