Origin Energy’s LNG export venture, APLNG, has formally advised the Albanese government that it will not support a national gas reservation scheme if the framework requires compliant producers to compensate for supply failures by rivals.
The submission specifically targets the potential treatment of Santos’ Great Australian LNG (GLNG) project, arguing that APLNG should not be forced to "carry the can" for a competitor’s inability to meet domestic east coast market obligations.
The intervention marks a sharp escalation in industry tensions surrounding the draft policy, which aims to balance domestic affordability with export security.
APLNG’s stance highlights a critical design flaw in the proposed reservation mechanism: the risk that penalizing compliant exporters for the shortfalls of others could distort investment incentives and reduce overall supply reliability.
By drawing a direct line to Santos’ GLNG project, APLNG is signaling that any exemption or penalty structure must be strictly tied to individual project performance rather than industry-wide averages.
This development follows recent moves by Santos, which has urged the government to deny competing gas producers exemptions from the upcoming scheme.