Santos has formally urged the Australian government to deny competing gas producers exemptions from the upcoming national gas reservation scheme, marking a sharp escalation in industry tensions ahead of the policy's launch.
The east coast's largest gas producer broke ranks with broader industry voices by submitting a request to federal regulators that opponents should not receive "leave passes" from the reservation requirements.
The move highlights a fractured front among Australian energy companies as the Labor government prepares to implement its controversial supply control framework.
While some producers have sought flexibility to maintain export commitments or manage operational constraints, Santos appears to be leveraging the regulatory process to level the playing field, arguing that exemptions could undermine the scheme's integrity and distort domestic supply dynamics.
This development follows weeks of intense debate over the reservation rules, which aim to prioritize domestic gas supply for Australian manufacturers and households.
Santos chief executive Kevin Gallagher has previously rejected calls from industrial users for below-cost gas supplies, warning that board directors would breach their fiduciary duties by agreeing to such terms.