Australia eased plans to force liquefied natural gas exporters to reserve supplies for domestic users, replacing a fixed requirement with an annual cap based on demand. Producers will be required to keep as much as 20% of their export-bound LNG in Australia, Energy Minister Chris Bowen said on Thursday. The country's energy regulator will set the amount annually, based on a rolling five-year demand forecast with an added 10% supply buffer.

Bowen said during a press conference in Canberra that the new framework provides greater flexibility for producers while ensuring energy security. The policy shift comes after consultations with industry stakeholders who argued the previous fixed requirement threatened investment. Australia remains a top global LNG exporter, with major projects operated by companies including Shell, TotalEnergies, and BP.

The regulator's annual review process aims to balance domestic needs with export market commitments. Bowen emphasized that the 20% cap is designed to protect consumers without discouraging future gas development.