The federal government is expected any day to announce the biggest shake-up of the east coast gas market in years. Ordinarily, gas producers would be alarmed at the prospect of such an overhaul, and for good reason. The past decade of gas market policy has been marked by rushed reforms, heavy-handed market interventions and more regulation.

This time, there is a degree of optimism that change can be for the better. The government’s Gas Market Review was set up earlier this year with an aim to “improve and streamline” the complex regulatory framework that currently governs the east coast gas market, and “ensure sufficient affordable gas supply in the longer term”.

Gas producers say taking reserves for Australia from existing export supplies would harm confidence to invest.Credit: Bloomberg

Reform is necessary and long overdue. A well-supplied and affordable gas market is essential for Australia’s economic and energy security. Natural gas provides reliable electricity, fuel for heating and cooking in more than 5 million Australian homes, and is the main source of energy for Australian manufacturing. Australian gas producers and users agree that the current........

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