Australia is one of the world’s major exporters of liquefied natural gas (LNG). Yet, there are mounting concerns about whether gas from the east coast gas market will remain available and affordable for ordinary Australians.

The federal government’s proposed Domestic Gas Reservation Scheme aims to address these concerns. It will require LNG exporters to supply gas to domestic customers, helping ensure households, manufacturers and businesses can access enough energy. The laws were introduced to federal parliament on October 14, and are yet to be finalised.

But the scope of this scheme has sparked vigorous debate. A key question is whether the scheme addresses a market-wide problem or places a disproportionate burden on single companies, notably energy giant Santos. Will the scheme unfairly target Santos – or give it unfair benefits?

The government has drafted the laws with exemptions designed to accommodate existing gas contracts. But does this benefit Santos, specifically through its Gladstone LNG project, over other companies?

The challenge for policymakers is to ensure the scheme recognises genuine differences between gas producers, without threatening domestic supply or inflating gas prices.

Santos in the spotlight

Santos is an Australian oil and gas company with several major projects across the country, including the Barossa LNG and Beetaloo Basin gas fields.

Most recently, its LNG plant near Gladstone, Queensland has been thrust into the spotlight. This plant is also home to two other major LNG export facilities: Queensland Curtis LNG operated by Shell and Australia Pacific LNG, a joint venture of Origin Energy and ConocoPhillips.

While these projects have supplied gas to the domestic........

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