14/06/2026
A Beach Energy commissioned report prepared by Kroll which examines the east coast supply outlook and the potential impacts of the Federal Government’s proposed domestic gas reservation policy has been released today.
The findings of the report titled, 'An assessment of east coast gas adequacy and policy design' are clear.
It shows Australia’s east coast gas market is well supplied into the early 2030s, with sufficient reserves for the next decade and beyond.
The issue is not a lack of gas in the ground. The real challenge is making sure gas can be delivered where and when it is needed, particularly into southern markets.
The Report shows the policy could worsen peak day shortfalls in the southern market and bring them forward to 2027 by displacing southern production that is vital for those winter demand peaks.
A permanent 20% reservation weakens the investment signals needed to bring on new supply, storage and transport infrastructure, particularly in southern basins.
Economic modelling indicates:
· ~$2.9 billion in annual net welfare economic losses under a 20% setting
· ~$653 million reduction in real GDP each year by 2030
If we want reliable and affordable energy, policy should support the domestic producers to keep supply flowing where and when it is needed.
Beach Energy Managing Director and CEO Brett Woods: “As currently drafted, the scheme undermines the objectives it is meant to serve. It reallocates gas rather than creating new supply, weakens investment in the southern basins where supply matters most, and carries a real economic cost without solving the winter reliability problem. There is a better way to deliver secure, affordable gas, and we want to work with the Government to get there.”
Read the media release and full report: https://beachenergy.com.au/media/media-releases/
