This paper provides a variety of stakeholder perspectives on domestic gas reservation, while also discussing the costs and benefits at a theoretical and conceptual level.
Part One of this paper sets out background material to the discussion of domestic gas reservation. Australia’s gas markets are described together with an overview of the gas supply chain. Key statistics are presented at three scales, where available – national, the eastern market, and NSW. Data includes gas reserves, exploration expenditure, production, consumption, LNG exports, wholesale and retail prices. A history of gas developments in Australia and an overview of the current regulatory framework are also provided.
Parts Two and Three consider domestic gas reservation. Part Two sets out the Commonwealth position on domestic gas reservation, and describes in detail the WA and Queensland policies. A range of stakeholder perspectives are presented prior to a theoretical analysis of the costs and benefits of the policy. Discussion of the factors that may affect domestic prices in coming years is followed by consideration of the implications of a reservation policy on international trade. Part Three contains an overview of gas policies in other gas producing countries, and includes a case study of the United States.