Premier says Australia's largest LNG producer is confident that export restrictions will not harm the state.

Roger Cook, the premier of Western Australia, said that Madeleine King had "assured him" on Wednesday that a new federal policy reserving 20 percent of gas output for domestic use would not harm his large 'LNG' industry.

He said that Maddie King was a good friend and my local member. We've discussed this extensively, and she's determined to ensure it does not have a negative impact on Western Australia's established practices.

Since Iranian strikes have?knocked-out Qatari LNG installations, Australia is now the second largest supplier in the world, with Western Australia accounting for nearly two-thirds.

King announced on May 7, a national scheme for gas reservations, designed to?stabilize the tight supply along the east coast.

The scheme will start in July 2027 and will apply to all contracts or extensions that were signed after December 22, last year. Many details are still to be revealed, including exemptions for certain producers.

Western Australia has its own system to reserve 15% for domestic use. The state Labor government, as well as LNG export giants Woodside Energy and Chevron have been'spooked' by changes to the system that it claims is working.

The WA policy uses annual production as a measure of production. However, the national scheme uses total lifecycle production instead.

The consultation document released on Monday stated that the Domestic Supply Obligation will operate in accordance with?states and territories policy without specifying how it would mesh with Western Australia's scheme.

King said that the Western Australian scheme would "of course" be taken into consideration when he spoke to ABC Radio in Perth on Tuesday.

Cook said on Wednesday that "we'll work with them to determine what opportunities there are for Western Australia based on this national approach." Helen Clark, Helen Clark's Reporting; Jan Harvey, Jan Harvey's Editing

(source: Reuters)