Australian energy stocks slip on domestic gas reservation plan

Australian energy stocks dropped after the government announced a domestic gas reservation scheme requiring LNG exporters to set aside 20% of new production for domestic buyers. The policy, aimed at easing east-coast gas shortages and lowering consumer energy costs, will apply to new contracts and spot volumes from July next year but will not affect existing export agreements. Markets reacted negatively on concerns about future export earnings: the S&P/ASX 200 Energy sub-index fell about 3%, Santos and Woodside slid roughly 3.5%–4.5%, and Origin fell nearly 3%. Government forecasts also signalled a potential supply shortfall in the July–September quarter, reinforcing investor unease.