New Gas Regulator to Enforce Domestic Gas Supply; Heavy Fines for Exporting LNG Without a Licence or Failing to Supply Local Markets
Domestic Gas Reservation Bill 2026
House of Representatives
Senate
Assent
Topics
criminal penalties energy infrastructure export licences government oversight information sharing natural gas regulatory compliance
Links to official parliament websites
Effects of this bill
If this bill passes, it means that:
The Minister for Resources cannot grant an LNG export licence unless the applicant is a fit and proper person, has a physical connection to a domestic gas market, and the Energy Minister and Industry Minister are consulted.
The Minister for Resources can suspend or cancel an export licence if the holder fails to meet their obligations, provides false information, or fails to pay required levies.
Before cancelling or suspending a licence, the Minister for Resources must give the holder written notice and a reasonable time to explain why the action should not be taken.
If the control of a licence holder changes without the Minister for Resources' consent, the licence is automatically suspended and then cancelled.
People who begin or stop controlling a licence holder must tell the Minister for Resources in writing within 30 days or they face a civil penalty.
Licence holders must supply a set amount of gas to the domestic market. Those under an 'extended period determination' must supply at least 20 per cent (or a lower set amount) of their total covered exports to the domestic market.
The Gas Regulator is established to monitor, audit, and enforce compliance with domestic gas reservation laws.
The Gas Regulator can issue written notices requiring people to provide information, produce documents, or appear to give evidence. People who fail to comply with these notices can be fined or jailed for up to 2 years.
The Gas Regulator can share information with the Minister for Resources, the Energy Minister, the Industry Minister, the Department of Home Affairs, the Australian Energy Market Commission, AEMO, or state and territory gas regulators.
Compliance officers appointed by the Chair of the Gas Regulator can enter premises and use reasonable force against things to inspect documents and verify compliance. They cannot use force against people.
The Chair of the Gas Regulator can apply for warrants to enter premises for monitoring or to gather evidence for investigations.
Companies that export LNG without a licence, fail to meet domestic supply obligations, or use anti-avoidance schemes face heavy fines. These fines can be up to 50,000 penalty units, three times the benefit gained, or 10 per cent of annual turnover.
Individuals and executive officers can be fined up to 10,000 penalty units for core breaches, such as exporting without a licence or failing to meet supply obligations, if they were reckless or failed to prevent the breach.
Companies and individuals face fines for providing false or misleading information in applications or reports. Companies can be fined up to 5,000 penalty units, and individuals up to 500 penalty units.
Companies that fail to have an accepted compliance plan or fail to provide an annual report face civil penalties. Failing to provide an annual report carries a fine of 10,000 penalty units.
People who fail to provide required information or documents can be hit with a daily fine of 10 per cent of the maximum penalty for the underlying breach until they comply.