{"id":2843971,"version":0,"headline":"Australia reservation scheme to shape new gas: Woodside","dateModified":"2026-06-25T06:47:46Z","datePublished":"2026-06-25T06:46:57Z","articleBody":"

The design of the federal government's new gas reservation scheme, currently open for public comment, will dictate Australian independent Woodside Energy's decision to drill new domestic wells in the Gippsland basin.

Woodside last year identified four development targets that it said could deliver up to 200PJ (5.34bn m³) of sales gas to the market via its Bass strait assets, including the Gippsland basin joint venture (GBJV), for which it will assume operatorship from ExxonMobil this year.

But this plan hinges on both technical maturity and Canberra's new gas reservation scheme, chief executive Liz Westcott said on 25 June, warning that the right policy settings and collaboration between industry, government and community was needed to progress new projects.

The 50:50 GBJV assets include the 700 TJ/d Longford gas plants, the Long Island Point gas liquids terminal and pipelines linking offshore operations with Victoria state. Woodside will also take over operatorship at the Kipper unit joint venture, which is 32.5pc owned by ExxonMobil, 32.5pc by Woodside, and 35pc by Japan's Mitsui.

Scheme start looms

The gas reservation programme, slated to begin on 1 July next year, will require LNG exporters to reserve 20pc of shipped volumes for the domestic market only, the government has said.

Australia has, however, pledged to respect term supply contracts entered into before this year as part of the national scheme.

It remains unclear how this will operate practically, but it is designed to avoid a possible shortfall later this decade due to poor gas planning by state and federal governments.

Woodside does not exports gas from its eastern states assets but supplies LNG from its 14.3mn t/yr North West Shelf and 4.9mn t/yr Pluto terminals on the west coast. Western Australia's state government has said it has been assured its 15pc reservation scheme will meet Canberra's stated goals.

Consultation on the reservation scheme will close on 30 June, with further development of the programme to take place in July-December.

The reservation is causing uncertainty among foreign investors in the nation's LNG sector, while domestic producers are flagging future supply impacts if investment is curtailed.

By Tom Major

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The design of the federal government's new gas reservation scheme, currently open for public comment, will dictate Australian independent Woodside Energy's decision to drill new domestic wells in the Gippsland basin.

Woodside last year identified four development targets that it said could deliver up to 200PJ (5.34bn m³) of sales gas to the market via its Bass strait assets, including the Gippsland basin joint venture (GBJV), for which it will assume operatorship from ExxonMobil this year.

But this plan hinges on both technical maturity and Canberra's new gas reservation scheme, chief executive Liz Westcott said on 25 June, warning that the right policy settings and collaboration between industry, government and community was needed to progress new projects.

The 50:50 GBJV assets include the 700 TJ/d Longford gas plants, the Long Island Point gas liquids terminal and pipelines linking offshore operations with Victoria state. Woodside will also take over operatorship at the Kipper unit joint venture, which is 32.5pc owned by ExxonMobil, 32.5pc by Woodside, and 35pc by Japan's Mitsui.

Scheme start looms

The gas reservation programme, slated to begin on 1 July next year, will require LNG exporters to reserve 20pc of shipped volumes for the domestic market only, the government has said.

Australia has, however, pledged to respect term supply contracts entered into before this year as part of the national scheme.

It remains unclear how this will operate practically, but it is designed to avoid a possible shortfall later this decade due to poor gas planning by state and federal governments.

Woodside does not exports gas from its eastern states assets but supplies LNG from its 14.3mn t/yr North West Shelf and 4.9mn t/yr Pluto terminals on the west coast. Western Australia's state government has said it has been assured its 15pc reservation scheme will meet Canberra's stated goals.

Consultation on the reservation scheme will close on 30 June, with further development of the programme to take place in July-December.

The reservation is causing uncertainty among foreign investors in the nation's LNG sector, while domestic producers are flagging future supply impacts if investment is curtailed.

By Tom Major

","lead":"The design of the federal government's new gas reservation scheme, currently open for public comment, will dictate Australian independent Woodside Energy's decision to drill new domestic wells in the Gippsland basin.","cmsId":"24667458","source":"Censhare"}