Major foreign oil and gas companies operating in Queensland’s liquefied natural gas (LNG) export sector have expressed strong opposition to a proposed Australian government policy that could require them to supply gas directly to the domestic market.

Under the Albanese government’s developing domestic gas reservation scheme, international investors such as Korea Gas Corporation, Sinopec, and TotalEnergies may be individually compelled to allocate portions of their production to Australian customers.

The proposal forms part of broader efforts to address domestic gas affordability and security concerns, particularly as Australia balances its role as a major global LNG exporter with rising local energy demand pressures.

However, industry sources indicate the plan has created significant tension between the government and overseas stakeholders who have invested heavily in Queensland’s LNG infrastructure, valued at around $80 billion.

According to reports, these companies are alarmed by the prospect of mandatory supply obligations being imposed at an individual operator level rather than through a more flexible market-based mechanism.

Industry participants argue that such intervention could undermine investment certainty, distort contractual export commitments, and potentially affect Australia’s reputation as a stable destination for large-scale energy investment.

Consultation on the policy is ongoing, and discussions are expected to intensify as stakeholders assess the potential operational and commercial impacts.

The debate highlights the broader policy challenge facing Australia: ensuring adequate and affordable domestic gas supply while maintaining the confidence of international partners who underpin the country’s LNG export earnings and energy infrastructure development.