This bill is currently before Parliament.
Climate, energy & environment
The bill would amend the Offshore Petroleum and Greenhouse Gas Storage Act 2006The Commonwealth Act governing offshore petroleum and greenhouse gas storage activities. This bill would amend its petroleum production licence provisions. to create a domestic reserve obligation for petroleum production licences in Commonwealth offshore watersOffshore areas regulated by the Commonwealth rather than by state or territory petroleum laws. The bill targets petroleum resources under the seabed in those Commonwealth areas..
Senator Hanson introduced the bill to require offshore petroleum production licensees to reserve part of their exported petroleum for Australian use. The explanatory memorandum says the bill is intended to ensure Australians have enough natural gas and other hydrocarbons by imposing a new obligation on companies operating in Commonwealth waters. Hanson's second-reading speech framed the problem as domestic gas shortages and high prices despite Australia's large gas exports, and argued that a national offshore reserve would extend the kind of reservation approach used in Western Australia to the Commonwealth offshore resource.
The bill sits within a wider Australian gas-supply debate. Its specific legal mechanism is a private senator's proposal for a 15% reserve attached to Commonwealth offshore petroleum production licences. Around the same period, collected public-context reporting records separate government consideration of east-coast and national gas-reservation arrangements, including concerns about shortages, prices, manufacturer supply and industry objections. Those reports help explain the policy background, but they are not evidence that this bill passed or became the government's scheme.
The collected parliamentary record for this bill contains the sponsor's case but not later debate from other parties, committee findings, divisions or a recorded amendment process. The main criticism available in the source bundle comes from related public-context reporting about gas-reservation policy more generally: industry participants were reported as warning of confusion and investment or supply risks, and ACCC-related reporting warned a reservation scheme could produce higher prices or worse outcomes for domestic buyers. Those criticisms are relevant background, but this page does not treat them as Senate criticism of this specific bill unless the source says so.
Senator Pauline Hanson introduced this bill. Supportive speeches so far have come from One Nation.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
92 days
Updated 10 June 2026.
Meaning
The bill would amend the Offshore Petroleum and Greenhouse Gas Storage Act 2006The Commonwealth Act governing offshore petroleum and greenhouse gas storage activities. This bill would amend its petroleum production licence provisions. to create a domestic reserve obligation for petroleum production licences in Commonwealth offshore watersOffshore areas regulated by the Commonwealth rather than by state or territory petroleum laws. The bill targets petroleum resources under the seabed in those Commonwealth areas..
A licensee would have to enter a domestic reserve agreementThe proposed agreement a licensee would have to enter with the Commonwealth, reserving petroleum equal to 15% of the previous year's exports for Commonwealth use. with the Commonwealth within 12 months, counted from the grant date for licences granted on or after 1 January 2027, or from commencement for earlier licences.
Each agreement would reserve petroleum equal to 15% of the quantity exported by the licensee in the previous year for the exclusive useThe bill's term for the Commonwealth's right to use the reserved petroleum. The Commonwealth could transfer that right to a state or territory for a specified period. of the Commonwealth.
The Commonwealth could transfer its exclusive-use rights to a state or territory for a specified period during the agreement.
A domestic reserve agreementThe proposed agreement a licensee would have to enter with the Commonwealth, reserving petroleum equal to 15% of the previous year's exports for Commonwealth use. would have to run for at least 10 years, and the explanatory memorandum says further agreements would be required while the production licence remains in force.
The bill would apply to petroleum production licences granted before, on or after commencement, would commence the day after Royal AssentThe formal approval a bill needs after passing Parliament before it becomes an Act. The introduced text says this bill would commence the day after Royal Assent if enacted. if enacted, and is still recorded in the source bundle as before the Senate.
A petroleum production licence is subject to a condition for the duration of the period that the licence is in force that the licensee must enter into an agreement (a domestic reserve agreement) with the CommonwealthOffshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) introduced bill text
by the end of the period of 12 months beginning on: (a) if the petroleum production licence is granted on or after 1 January 2027—the day on which the licence is granted; or (b) if the petroleum production licence was granted before 1 January 2027—the day this section commences.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) introduced bill text
for each year the agreement operates, the licensee reserves an amount of petroleum equivalent to 15% of the quantity of petroleum exported by the licensee in the previous year for the exclusive use of the CommonwealthOffshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) introduced bill text
The Commonwealth may transfer the rights to exclusive use to a State or Territory for a specified period during the operation of the agreement.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) introduced bill text
The Bill proposes a domestic reserve agreement for a minimum of 10 years with a subsequent obligation to enter into further agreements while the licence is in force.Offshore Petroleum and Greenhouse Gas Storage Amendment (Domestic Reserve) explanatory memorandum
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
The bill sits within a wider Australian gas-supply debate. Its specific legal mechanism is a private senator's proposal for a 15% reserve attached to Commonwealth offshore petroleum production licences. Around the same period, collected public-context reporting records separate government consideration of east-coast and national gas-reservation arrangements, including concerns about shortages, prices, manufacturer supply and industry objections. Those reports help explain the policy background, but they are not evidence that this bill passed or became the government's scheme.
Western Australia formalised a domestic gas reservationA policy requiring producers or exporters to make a portion of gas available for domestic use. This bill proposes a reservation obligation for offshore petroleum production licences. policy
Hanson's second-reading speech relied on Western Australia's reservation policy as an example of a domestic gas obligation operating alongside investment in LNG projects.
Senate second-reading speech ↗Government reported to be considering an east-coast gas reserve
Collected public-context reporting said the Albanese government was likely to consider an east-coast reservation scheme as part of a broader energy-system review.
Australian Financial Review ↗Bowen review flagged gas-reservation options
Collected reporting said the Energy Minister confirmed a review would consider replacing gas price caps with obligations on producers to offer supply to domestic customers.
Australian Financial Review ↗East-coast reservation proposal reported
Collected reporting said east-coast LNG exporters could be required to set aside a share of production for domestic supply from 2027, with manufacturers welcoming the direction while details remained uncertain.
Australian Financial Review ↗Domestic Reserve bill introduced
Senator Pauline Hanson introduced this private senator's billA bill introduced by a senator who is not introducing it as a government minister. APH lists this bill as a private bill sponsored by Senator Pauline Hanson. in the Senate and moved the second reading. The APH record collected for this page lists the bill as before the Senate.
Parliament of Australia ↗ACCC concern reported about separate reservation plan
Collected reporting said an ACCC gas-division figure warned that a government gas-reservation proposal could increase exporter dominance and lead to worse outcomes for domestic buyers. This was reported context about a separate policy debate, not a recorded outcome for this bill.
Australian Financial Review ↗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
Key criticism
The collected parliamentary record for this bill contains the sponsor's case but not later debate from other parties, committee findings, divisions or a recorded amendment process. The main criticism available in the source bundle comes from related public-context reporting about gas-reservation policy more generally: industry participants were reported as warning of confusion and investment or supply risks, and ACCC-related reporting warned a reservation scheme could produce higher prices or worse outcomes for domestic buyers. Those criticisms are relevant background, but this page does not treat them as Senate criticism of this specific bill unless the source says so.
This section is deliberately conservative because the source bundle does not include opposition speeches or committee scrutiny for s1489.
Risk of worse buyer outcomes
Collected reporting about a separate government gas-reservation plan said an ACCC gas-division figure warned reservation could entrench LNG exporter dominance and result in higher prices or worse outcomes for domestic buyers.
Industry uncertainty about reservation design
Collected reporting said domestic gas companies criticised Labor's separate 20% reservation plan after its announcement, with confusion over how broadly the policy would apply.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Pauline Hanson supported the bill as its sponsor, arguing that Australians should benefit more directly from offshore petroleum resources.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“A national gas reserve in offshore waters would provide energy security, lower the cost of living for families and save Australian manufacturers.”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.
