The initiative is set to launch in 2027, but starting today, it will be applied to new contracts moving forward.

At the heart of this initiative is a crucial mandate: exporters are required to allocate between 15% and 25% of their gas production for the domestic market.

According to Bowen, this allocation is expected to contribute approximately 200 to 350 petajoules of gas annually.

“We consider this to be sound policy, drawing from Western Australia’s experience over the past decades,” Bowen stated. “The region has successfully developed a vibrant gas industry that not only supports exports but also meets local demand.”

“It is imperative that we provide assurance to Australian industries that from today onward, their contracts must ensure sufficient domestic gas supply for the future,” he added.

Bowen said the scheme would put “downward pressure” on gas costs but could not confirm an expected figure.

Bowen said that it made “no sense” that Australia could be one of the largest gas producers in the world and still experience a shortfall.

”Most Australians think that Australians should have first rights to that’s under Australian soil,” he added.

“And that gas should be available to Australians at reasonable prices. Australians are right about that.”

The report also found that Australians pay between four and seven times more for gas than other large, gas-producing nations, including the US, Russia, Qatar, and Canada.

The federal government commissioned a six-month review of the market earlier this year as the country faced a looming gas shortage.

The scheme will be designed in consultation with the industry, international partners and the community next year.