{
  "id": 14141330,
  "title": "Shell Slams Australia's Plan to Force LNG Producers to Supply Domestic Market",
  "url": "https://urgent.news/2026/10/13/shell-slams-australias-plan-to-force-lng-producers-to-supply-domestic",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-13T07:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Latest-Energy-News/World-News/Shell-Slams-Australias-Plan-to-Force-LNG-Producers-to-Supply-Domestic-Market.html"
  },
  "original_language": "en",
  "account": "Shell has voiced opposition to the Australian government's plan to mandate LNG producers to reserve a portion of their output for domestic use. Cecile Wake, Shell Australia's chairwoman, criticized the measure as an \"ungainly sledgehammer\" that intervenes heavily in a market that appears to function well. The proposal to create a domestic gas reserve came into existence in May this year, prompted by concerns over potential gas shortages, especially along the east coast. That region is notably susceptible to supply shortages. Last year, Australia's competition regulator had previously cautioned that the market could face a shortfall by December. Initially, the regulations mandated that producers should reserve 20% of their output for the local market. The proposal now stands at up to 20% of output being reserved for the domestic market. However, Shell believes this could be excessive, particularly when the global gas market has lost a fifth of its supply due to a QatarEnergy force majeure. Energy companies are anticipating significant profits from LNG sales, making the current period a poor time for the introduction of domestic market reserve allocations. Despite this, the plan is set to commence from 2028, providing LNG majors ample time to profit from the existing LNG shortage. Based on Shell's regional chairwoman's comments, the industry's deeper concern lies in the provision that LNG producers \"must supply\" volumes equivalent to 110% of demand on the east coast, rather than merely offering these volumes to potential buyers in the domestic market. Shell argues that this stipulation would result in detrimental price impacts and \"sow the seeds of tomorrow's market failure\".",
  "summary": "Shell has spoken out against a plan by the Australian government to ensure domestic gas supply by mandating LNG producers to reserve certain volumes of their output for domestic use. “Fundamentally, it's a sledgehammer to crack a nut. And it is an extraordinarily heavy-handed intervention into a market that is actually working well,” Shell Australia’s chairwoman, Cecile Wake, said at an industry…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}