“Critical” action taken over access to gas by the nation’s government has been welcomed by the Australian Food and Grocery Council (AFGC).
The Domestic Gas Reservation Bill 2026 is currently moving through parliament, which guarantees a “nationally consistent and effective legislative framework to ensure Australian natural gas reserves are available for Australian businesses and consumers”. The bill claims it will bring energy security and lower natural gas prices.
“Australian manufacturers should be able to access Australian gas at internationally competitive prices,” said AFGC CEO, Colm Maguire.
“A domestic gas reservation scheme has the potential to improve supply, put downward pressure on prices and give manufacturers greater confidence to invest in their Australian operations.”
Gas makes up around 40 per cent of the energy needs for food and grocery manufacturers, the AFGC said.
“The test for this legislation will ultimately be whether it delivers more gas into the domestic market and translates any additional supply into lower and more predictable prices for manufacturers,” Maguire added.
“Getting the implementation right will therefore be critical. The scheme needs to provide certainty for gas users and ensure manufacturers can secure competitive long-term contracts.”
The emphasis on gas supply comes in the wake of continued strain on global energy supplies, following the US-Iran war and the closure of the Strait of Hormuz. The AFGC continues to call for policies that increase domestic gas supplies in Australia.
