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In the week before Christmas, the Albanese government unveiled their wet lettuce East Coast gas reservation policy, which will do little to enhance gas supply and lower prices.
My biggest issue with the policy is that it would apply only to new gas projects beginning in 2027, and exporters would be required to set aside only 15% to 25% of their gas production for domestic use.
As a result, any additional gas supplies will only arrive when new projects are completed or old contracts expire beginning in 2030:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.