00:01Under the East Coast Gas Reservation Plan, LNG companies would be required to supply
00:0820% of their total export production into the Australian domestic market.
00:13So what we know is that this policy would apply to prospecting contracts and the spot
00:18market and not longer term existing contracts.
00:21So earlier today we saw Energy Minister Chris Bowen and Resources Minister Madeline King
00:26speak and provide further details about this policy and both said that it will put strong
00:32downward pressure on gas prices.
00:34Neither minister would specify by how much but Resources Minister Madeline King said it
00:40will help shield Australia from the volatile international markets.
00:46It will ensure that we have stable and really importantly long term policy settings that
00:52will drive a permanent wedge between international and domestic gas prices.
00:57And I really can't overstate the significance of the reform we're all talking about today.
01:03And our gas market, our gas market prices will no longer be hostage to international markets.
01:10And Lexi, what's been the reaction to the scheme?
01:13Well Joe, from the political party side of things, the coalition has been quick to criticise it,
01:19saying that it's a bad outcome for Australians and that the plan lacks clarity.
01:23The Greens have called it a distraction from the growing push to impose a 25% levy on gas exports.
01:30When we're looking at the stakeholders side of things, we've heard from Manufacturing Australia,
01:34which is a CEO-led coalition of Australia's largest manufacturers, they've welcomed the plan.
01:40But Australian Energy Producers, which is the peak body of explorers, developers and producers
01:45of essential energy, they say that while they support the idea of a domestic gas reserve,
01:52this particular plan leaves more questions than answers.
01:56What the government's announced today will undermine investment, it will undermine our trading
02:01relationships and it will reduce competition.
02:05Now forcing Queensland LNG producers to supply 20% of export volumes into the domestic market
02:11will crowd out smaller domestic-only producers.
02:15And this is going to have long-term consequences for competition, for future supply and for prices.
02:23Australian Energy Producers' CEO, Samantha McCulloch there, Joe.
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