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Annika Rhoades

Domestic gas scheme necessary for nation's future: PM

A gas reservation scheme is critical to the survival of the nation's struggling heavy industry. (Marion Rae/AAP PHOTOS)

The prime minister has defended the need for a national gas reserve, citing the suffering of communities and jobs because of heavy industry shutdowns.

Speaking at the Australian Workers' Union 2026 national conference on Wednesday, Anthony Albanese said skilled workers were the "backbone" of the economy and the nation.

The government's Domestic Gas Reservation Scheme would require gas exporters to supply up to 20 per cent of their exports to the Australian market annually, something Mr Albanese said would help secure the country's future.

Anthony Albanese
Anthony Albanese spruiked his gas reservation bill at a workers' union national conference. (Mick Tsikas/AAP PHOTOS)

"As we build out a new, modern renewable energy grid, gas remains critical for heavy industry and manufacturing," Mr Albanese said.

He said the nature of industrial modernisation would "sometimes bring pain to affected communities".

More than 200 workers lost their jobs after the closure of Australia's sole manganese alloy smelter, Liberty Bell Bay, in northern Tasmania in August.

In September, 500 jobs were lost after a decision to shut down the Whyalla steelworks blast furnace in South Australia.

"I know a lot of your members have lost their jobs and that their communities and your union are suffering," Mr Albanese said, crediting the union for its role in advocating for industrial policy.

"But what I want you to know is this: that we will be doing all we can to assist the workers of both communities find a future for themselves and their families."

Liberty Bell Bay
More than 200 workers lost their jobs after the closure of the Liberty Bell Bay manganese smelter. (Ethan James/AAP PHOTOS)

The federal government, in partnership with state governments, has recently come to the financial rescue of struggling heavy industry.

In August, it was announced the federal and NSW governments would spend $2.5 billion over 10 years to secure the future of Australia's largest aluminium smelter, Tomago Aluminium.

The Bell Bay Aluminium smelter in Tasmania's north also recently secured a $200 million bailout package, jointly funded by the state and federal governments.

Mr Albanese said he was hopeful the gas reservation bill would be able to pass parliament, but its fate in the upper house remains uncertain, as it needs the support of either the Greens or the coalition.

"We need to keep the pressure on the make sure that it passes the Senate, because what it will do is pretty simply reserve Australian gas for Australian industry," he said. "Because this is about the future of Australia, and you can't argue that you actually stand up for our nation if you're not supporting this domestic gas reservation scheme."

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