Amplitude Energy has raised concerns over the Australian government’s gas reservation policy, arguing it will not effectively address the country’s rising energy costs and supply challenges. The company emphasized the importance of unlocking new gas supplies and reducing regulatory burdens on manufacturers to achieve more sustainable energy affordability.
Labor’s central policy requires liquefied natural gas (LNG) exporters to allocate up to 20 percent of their export volumes to the domestic market, aiming to lower prices and prevent shortages. However, this approach has drawn skepticism from industry representatives, including Amplitude Energy, which contends that mandating gas reservations may not lead to the necessary investments in new production capacity.
Jane Norman, managing director and CEO of Amplitude Energy, stressed that the Domestic Gas Reservation Bill should be evaluated for its ability to incentivize new supply development. She highlighted the company’s recent commitment to the East Coast Supply Project (ECSP) in Victoria, which is slated to begin producing gas by 2028, as an example of the kind of investment needed to meet demand. According to Norman, focusing solely on gas reservation policy overlooks broader cost pressures, such as increasing regulatory compliance, which continue to affect manufacturers and contribute to rising energy prices.
Energy analyst Saul Kavonic expressed strong criticism of the government’s policy, describing it as a missed opportunity wrought by political compromises. Kavonic warned that the current framework could hinder renewable energy investments, extend subsidies for coal, and create market inefficiencies by concentrating power with LNG exporters. He argued that what was presented as a mechanism to restrain exporters might paradoxically reinforce their influence and undermine long-term planning.
The government is attempting to strike a balance between ensuring reliable energy supply, managing domestic price pressures, and advancing emissions reductions within industrial sectors. Recent developments include Resources Minister Madeleine King’s announcement that the West Peron formation in the Bonaparte Basin has been identified as a greenhouse gas storage site—a key step toward the proposed Bonaparte carbon capture and storage project. The initiative, led by INPEX, plans to sequester up to 443 million tonnes of CO₂ over several decades, initially capturing emissions from the Ichthys LNG facility, with potential to expand support to other industrial operations. This project aims to position the Bonaparte Basin as a significant long-term carbon storage hub while fostering regional job creation and investment.
Amplitude Energy also underscored the continuing role of gas in supporting Australia’s evolving energy system. Norman pointed out that gas could provide firming capacity to compensate for the intermittency of renewable energy sources and supply reliable power for emerging demands, including data centers and artificial intelligence infrastructure. She argued that attracting investment in these sectors depends on having a dependable and affordable energy supply, which in turn requires increased production.
The company called for policy settings that encourage private investment and improve productivity rather than expanding government control over the gas market. Norman noted that with substantial fiscal pressures on government-funded programs like health, aged care, and the National Disability Insurance Scheme, fostering private sector confidence to develop new energy resources remains essential for Australia’s economic and social goals.