The ALP is losing patience with holders of Gas licenses..................

Australia threatens to change terms on 'use it or lose it' licences

Government claims it wants to speed up the development of gas resources held under retention leases

Australia's Minister for Resources & Northern Territory, Madeleine KingPhoto: ADELAIDEPHOTOGRAPHERS/APPEA

• Russell Searancke

Norway Correspondent

Published 28 March 2025, 10:33

The Australian government is threatening to change the conditions around the country's petroleum retention leases as part of an effort to expedite the development of gas discoveries.

There are at least 60 active retention leases in Australia, mostly off the western and north-western coasts, according to the National Offshore Petroleum Titles Authority.

The retention leases account for multiple trillions of cubic feet of gas, and are held by joint ventures including major liquefied natural gas operators such as Chevron, Woodside, Inpex and Santos.

A retention lease is a means of having security of tenure to explore and potentially develop a discovery, which is not currently commercially viable but is likely to become so within 15 years.

Minister for Resources Madeleine King indicated in an address to the Energy Club of Western Australia that, as part of the government's Future Gas Strategy, "the government has begun consultation on so-called “use it or lose it” guidelines to bring on more gas for Australian homes and businesses".

As part of those reforms, she wants to clarify expectations around what is considered to be "a commercial gas discovery" or "likely to be commercial".

The aim is to set firmer expectations of the work programme required to resolve commercial barriers to development.

"Our stronger position on retention leases will work to fast-track projects by discouraging repeated project delays for technical or commercial reasons. This reform underlines our government’s push to prioritise timely development of gas discoveries," said King.