Fixing the 'Santos-sized' problem in the gas market

Key points

• Analysts and big energy users say loopholes in a proposed federal gas reservation scheme could let Santos escape its obligations. Under the plan, exporters would set aside up to 20 per cent of their production for the domestic market each year.
• Union leader Paul Farrow warned the draft laws could allow paper supplies and wide ministerial discretion. Santos has been accused of driving up east coast prices by buying large volumes of local gas to export.
• Industry lobby Australian Energy Producers argued the policy goes too far and could reduce supply.