Origin Energy’s Domestic Gas Sales Decline Amid Government Reservation Scheme

By the Editorial Team · Saturday, October 31, 2026

Origin Energy’s domestic gas sales from its Australia Pacific LNG business dropped 25 percent in the September quarter following the federal government’s gas reservation scheme, while export revenues rose 22 percent due to higher international LNG prices. The policy aims to secure more gas for Australian consumers amid supply pressures, but the shift toward exports highlights the tension between domestic energy security and profitable global markets.

Origin Energy has reported a significant decline in domestic gas sales from its Australia Pacific LNG (APLNG) business, coinciding with the federal government’s implementation of a reservation scheme aimed at securing more gas for Australian consumers. In the September quarter, domestic gas sales from APLNG fell by 25 percent to 31.1 petajoules, while the average price received for gas sold within Australia dropped 37 percent to $5.67 per gigajoule.

Despite the decrease in local sales volumes and prices, Origin’s overall revenue from the LNG business increased by 22 percent year on year, reaching $2.6 billion. This increase was driven by a 32 percent rise in the realised liquefied natural gas (LNG) price for exports, which climbed to $US13.27 per million British thermal units amid a global energy crisis that boosted international demand.

The federal government’s gas reservation policy aims to alleviate supply pressures and improve affordability on the eastern seaboard by ensuring that sufficient volumes of natural gas are available for domestic users, including energy-intensive manufacturers. Under the scheme, LNG exporters are expected to reserve up to 20 percent of their exportable volumes for the local market when conditions allow. The government is also encouraging the industry to provide an additional 10 percent oversupply to create a buffer between forecast supply and consumption levels, aiming to stabilize market conditions.

The reservation scheme reflects concerns about tightening gas supplies and rising prices on the domestic market, which policymakers argue have made it more difficult for Australian households and manufacturers to access affordable fuel. However, some industry representatives have cautioned that deliberately oversupplying domestic markets could suppress prices to levels that undermine investment incentives for new gas developments, potentially leading to supply shortages in the long term.

Origin’s experience illustrates the conflicting impacts of the policy: while domestic sales have decreased alongside falling prices, the company has been able to capitalise on elevated LNG export prices, which remain linked to global market dynamics. The government’s intervention underscores the challenges of balancing domestic energy needs with the lucrative opportunities presented by international gas markets.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.