Does Australia's gas scheme unfairly target Santos?
The federal government's proposed Domestic Gas Reservation Scheme aims to keep LNG export gas available domestically, but debate centres on whether exemptions for existing contracts disproportionately benefit Santos.
The federal government introduced laws on October 14 requiring LNG exporters to supply gas to Australian households and businesses. The scheme aims to ensure domestic supply and affordability.
But policymakers face a challenge: how to ensure all companies contribute fairly without unfairly targeting any single exporter, particularly energy giant Santos. Santos relies heavily on domestic gas purchased on the east coast market to fulfil its long-term export contracts.
The government has drafted exemptions to protect existing gas contracts entered before December 22, 2025. The question is whether extending those exemptions to contract extensions, such as Santos' five-year extension with South Korean customer KOGAS through 2030, allows the company to keep exporting vast volumes without meeting any domestic supply obligations.
Critics argue the scheme must distinguish between genuine commercial arrangements that deliver extra gas to Australia and transactions that merely shuffle gas between companies without increasing actual domestic supply.
- October 14
- Laws introduced
- December 22, 2025
- Exemption cutoff date
- 2030
- KOGAS contract through
Why it mattersHow the government designs this scheme determines whether Australians actually get more affordable gas or whether loopholes leave exporters free to prioritise overseas sales.
AustraliaDomestic gas prices and supply for Australian households and manufacturers depend on how fairly and effectively the scheme compels LNG exporters to prioritise local customers.
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