This bill did not become law and is no longer proceeding.
Climate, energy & environment
Gas and oil producers in Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. would have to make a domestic reserve deal with the Australian GovernmentHere, this means the Australian Government, which would be the first holder of the reserved supply rights. so more of their production is kept for Australian use.
Australians were left without a guarantee that enough natural gas and other hydrocarbons from Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. would be kept for local use. The bill requires petroleum production licensees to sign long-term agreements reserving 15% of exports for the CommonwealthHere, this means the Australian Government, which would be the first holder of the reserved supply rights., which can pass that supply to states or territories.
Western Australia had long required domestic gas supply through early state contracts and then a formal 15% reservation policyA rule requiring producers to keep a set share of gas for local buyers instead of exporting all of it., but no equivalent reserve applied to CommonwealthHere, this means the Australian Government, which would be the first holder of the reserved supply rights. offshore gas for the east coast even as Australia became the world’s biggest LNGGas that is chilled into liquid form for export by ship; the page uses LNG to describe Australia’s export market. exporter and eastern Australia faced gas shortages and rising electricity prices in 2022. After the Albanese government flagged a possible national reservation scheme in October 2022 without acting, the bill was introduced in September 2023 to force exporters in Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. to keep 15% for Australian use, but it lapsed when Parliament ended in July 2025.
The main case against the bill was that it was too blunt and might not actually put more gas into the Australian market, while risking disrupted export arrangements and weaker investment signals. That criticism came mainly from Labor senator Karen Grogan and, in a more conditional form, Nationals senator Matthew Canavan, who backed domestic reservation in principle but not this design.
Senator Pauline Hanson introduced this bill. Speeches supporting it came from Pauline Hanson's One Nation Party, some crossbench members.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
685 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
Gas and oil producers in Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. would have to make a domestic reserve deal with the Australian GovernmentHere, this means the Australian Government, which would be the first holder of the reserved supply rights. so more of their production is kept for Australian use.
Petroleum production licenceThe legal permission a company needs to extract oil or gas, and this bill would make that licence carry a domestic reserve condition. holders would have 12 months to sign a domestic reserve deal covering 15% of what they export, or they would fail a condition of their licence.
The Australian GovernmentHere, this means the Australian Government, which would be the first holder of the reserved supply rights. could hand its rights under the reserved supply deal to a state or territoryA state or territory government that the Commonwealth could pass the reserved supply rights to under the bill. so local governments could use the set-aside gas or petroleum.
Each domestic reserve deal would have to run for at least 10 years, and companies would need to sign another one if their production licence was still active after that.
The new domestic reserve rules would apply to petroleum production licences whether they were granted before or after the law started.
The purpose of this Bill is to ensure Australians have enough natural gas and other hydrocarbons by imposing a new obligation on gas and petroleum companies operating in Commonwealth waters.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) explanatory memorandum
If the Bill passed into law petroleum production licensees would be given 12 months to enter into a domestic reserve agreement with the Commonwealth for 15% of their exports and satisfy the condition of their licence.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) explanatory memorandum
10. Subsection 162A(3) provides that licensees must enter a contract with the Commonwealth in the first instance, but the Commonwealth is able to pass on the rights to exclusive use to a State or Territory for a specified period.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) explanatory memorandum
11. Subsection 162A(4) provides that each domestic reserve agreement or contract is long term and must operate for a minimum of 10 years beginning on the day the agreement commences. minimum of 10 years. At the end of the first contract licensees will be required to enter a new agreement if the production license is still in force.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) explanatory memorandum
14. Item 5 provides that the amendments apply to a petroleum production licence granted before, on or after the commencement of this item.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) explanatory memorandum
Context
Western Australia had long required domestic gas supply through early state contracts and then a formal 15% reservation policyA rule requiring producers to keep a set share of gas for local buyers instead of exporting all of it., but no equivalent reserve applied to CommonwealthHere, this means the Australian Government, which would be the first holder of the reserved supply rights. offshore gas for the east coast even as Australia became the world’s biggest LNGGas that is chilled into liquid form for export by ship; the page uses LNG to describe Australia’s export market. exporter and eastern Australia faced gas shortages and rising electricity prices in 2022. After the Albanese government flagged a possible national reservation scheme in October 2022 without acting, the bill was introduced in September 2023 to force exporters in Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. to keep 15% for Australian use, but it lapsed when Parliament ended in July 2025.
Western Australia begins long-term domestic gas supply deals
Western Australia encouraged gas investment by contracting for local supply, creating an early model for keeping part of production available at home.
Second reading speech ↗Western Australia formalises a 15% domestic gas reserve policy
The state’s formal reservation policyA rule requiring producers to keep a set share of gas for local buyers instead of exporting all of it. required 15% of gas to be kept for local use and was cited as proof that a reserve could coexist with major LNGGas that is chilled into liquid form for export by ship; the page uses LNG to describe Australia’s export market. investment.
Second reading speech ↗Eastern Australia faces gas shortages despite record LNGGas that is chilled into liquid form for export by ship; the page uses LNG to describe Australia’s export market. exports
By 2022 Australia was the world’s top LNGGas that is chilled into liquid form for export by ship; the page uses LNG to describe Australia’s export market. exporter, yet speakers said east coast shortages and high gas prices were pushing up electricity prices where most Australians live.
Second reading speech ↗Government flags a national gas reservation scheme
The government said it would consider options for a prospective national gas reservation scheme in a gas reservation issues paper, but the bill’s sponsor said it did not follow through.
Second reading speech ↗Domestic reserve bill is introduced in the SenateThe chamber of Parliament where this bill was introduced and later lapsed without passing.
Senator Hanson introduced the bill to require petroleum producers in Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. to make long-term agreements reserving 15% of exports for Australian use.
Parliamentary timeline ↗The bill lapses at the end of Parliament
The proposal did not pass and fell away when Parliament ended, leaving the suggested CommonwealthHere, this means the Australian Government, which would be the first holder of the reserved supply rights. offshore reservation scheme unmade.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Key criticism
The main case against the bill was that it was too blunt and might not actually put more gas into the Australian market, while risking disrupted export arrangements and weaker investment signals. That criticism came mainly from Labor senator Karen Grogan and, in a more conditional form, Nationals senator Matthew Canavan, who backed domestic reservation in principle but not this design.
Criticism was limited rather than broad, and one critic still supported reservation in principle.
May not increase supply
Karen Grogan argued the bill would not materially boost gas for Australian users because it targeted Commonwealth watersOffshore areas where the Australian Government, not a state, controls petroleum rules and licensing. where there were no producing projects, so the reserve requirement could miss the practical source of shortages.
Overbroad design could disrupt markets
Critics said the bill's one-size-fits-all reserve model was too broad and could interfere with export contracts, deter investment, or create unintended effects across different state gas markets rather than solving shortages in a targeted way.
Further sources
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Hanson supports the bill and says a national offshore petroleum reserve would give all states access to more gas, improve energy security, and lower costs for families and manufacturers.
Read in Hansard ↗Grogan opposes the bill, saying it would not increase domestic gas supply and would instead disrupt export contracts with key regional partners.
Read in Hansard ↗Pocock supports the bill and says Australians should get a fairer return from the gas they own.
Read in Hansard ↗Canavan says he supports the idea of keeping gas for Australian use, but wants a more targeted intergovernmental approach and says this bill is too broad and could deter investment or create unintended effects in places like Western Australia and Victoria.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 oppose
“As well as yelling across the chamber, One Nation talks about reserving gas for domestic purposes. The reality is that this bill won't have an impact on the domestic gas supply. It targets the petroleum fields in Commonwealth waters off New South Wales, Queensland and South Australia where there are currently no producing projects, so therefore it will have absolutely no impact whatsoever. I think that's about all we need to say here. This is not a useful bill. It will not do what it purports to do and it will have no material impact whatsoever on the supply of domestic gas in Australia.”Read the full speech in Hansard ↗
1 speaker · 1 mixed
1 speaker · 2 contributions · 1 support
Hansard records 2 separate contributions by Pauline Hanson on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Hanson supports the bill and says a national offshore petroleum reserve would give all states access to more gas, improve energy security, and lower costs for families and manufacturers. She argues the current export-heavy system leaves Australia short at home and that foreign-owned gas companies should not control the benefit of CommonwealthHere, this means the Australian Government, which would be the first holder of the reserved supply rights. resources.
“I commend the Bill to the Senate.”Read this contribution in Hansard ↗
Second reading speech
Hanson strongly supports the bill, saying it would force gas producers to set aside part of their output for domestic use and give Australians the benefit of the resources they own. She argues it would ease shortages, lower prices, and stop the country from wasting its natural wealth on exports.
“The really curious thing about this legislation is that it shouldn't be controversial and should enjoy universal support in this parliament. But for the obvious exception of the Greens, who have less economic expertise than your average guinea pig, why would it be controversial for the Australian people to receive any sort of economic benefit from the resources which belong to them? I urge all senators to remember they're not here to represent the interests of foreign-owned multinationals or Asian importers of Australian gas; they're here to represent the interests of the Australian people, and my bill advances their interests.”Read this contribution in Hansard ↗
1 speaker · 1 support
“I stand to support the Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) Bill 2023. It's maybe not that often that Senator Hanson and I agree, but, when it comes to the need for Australians to get a fair deal on how our gas is used, I support this.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.
