Australia is currently grappling with a significant energy crisis, which has led to rising energy bills and prompted the Albanese government to announce new subsidies in the recent budget.

Despite being a leading gas producer, Australia is facing potential gas shortages in its populous southeastern regions, necessitating the exploration of LNG imports and the establishment of import terminals.

To mitigate the crisis, a national gas reservation policy could be introduced to prevent energy companies from excessively profiting by selling domestic gas at inflated prices dictated by international markets.

The volatility of gas prices in Australia has been largely influenced by massive investments in LNG export infrastructure in Queensland over the past decade.

In light of these developments, Australia must consider both domestic production and international partnerships to secure its energy future.

This looming supply-demand gap is exacerbated by declining gas production and insufficient pipeline capacity from gas-rich areas like Queensland.

Interestingly, Japan, Australia's largest LNG customer, is now exporting more LNG than it consumes domestically, creating significant profits from its gas trading operations, which could position it as a potential supplier to Australia.

Currently, Western Australia is the only state with a gas reservation policy, which has resulted in significantly lower gas prices compared to the rest of the country during global energy crises.

Critics argue that LNG exports have driven domestic gas prices up to international levels, benefiting companies like Santos while disadvantaging Australian consumers who own the extracted gas.

There is speculation that the Coalition may propose a national gas reservation scheme, requiring gas producers to allocate a portion of their output for domestic use.