Minister eyes new gas reservation policy

Matt Canavan will work with state counterparts to develop a natural gas reservation policy.
Matt Canavan will work with state counterparts to develop a natural gas reservation policy.

Ensuring Australia has enough gas reserves will be central to a potential new Morrison government policy.

Over the next 12 months federal Resources Minister Matt Canavan will work with his state and territory counterparts in a bid to develop a national gas reservation policy.

"We can't repeat the mistakes of the past in just letting our gas be shipped overseas with no thought to our domestic requirements," Senator Canavan said in a statement on Friday.

The initiative comes after a review of the Australian Domestic Gas Security Mechanism, which is in place to ensure there's enough natural gas supplies for projected domestic demand.

The review found the mechanism, introduced in 2017, has helped lower domestic gas prices and secure supplies.

"However, I recognise that some businesses are still finding it difficult to get longer term gas offers and that some price offers remain higher than I want to see, especially when international LNG prices are low," Senator Canavan said.

Boosting Australia's gas production has been a priority for Energy Minister Angus Taylor, who has put pressure on states, particularly Victoria, to increase supply.

Victoria has a moratorium on onshore gas exploration.

Australian Associated Press