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 move, revealed in a submission to federal reservation rules obtained by The Age, sees the east coast's largest gas producer break ranks with broader industry voices that have sought flexibility under the new regulatory framework.
The submission targets specific requests from rivals for "leave passes" that would allow them to bypass certain reservation requirements.
By opposing these exemptions, Santos is positioning itself as a strict adherent to the Labor government's supply security objectives, potentially gaining favor with regulators while alienating competitors who argue that rigid rules could stifle investment and supply flexibility.
This development intensifies the ongoing debate over how to balance industrial energy costs with national supply security.
Santos chief executive Kevin Gallagher has previously rejected calls from Australian manufacturers for below-cost natural gas supplies, warning that board directors would breach their fiduciary duties by agreeing to such terms.