BlueScope has thrown its weight behind the Australian federal government’s proposed domestic gas reservation scheme, arguing that competitive steelmaking and broader industrial policy depend on secure, affordable energy inputs.
The steelmaker’s endorsement marks a notable shift in the debate, positioning large industrial consumers against gas producers who have warned that the policy could deter investment and reduce supply.
The reservation scheme aims to ring-fence a portion of domestic gas production for local use, shielding manufacturers from volatile global LNG prices.
BlueScope contends that without such measures, Australian industry faces an unlevel playing field, particularly as energy costs remain a critical determinant of competitiveness in sectors like steel and aluminum.
The company argues that the current market structure fails to balance affordability with supply security, leaving domestic users exposed to export-driven price spikes.
Gas producers, however, maintain that the draft design introduces unnecessary complexity and regulatory risk.