Chemical industry association Chemistry Australia welcomes the Senate Economics Legislation Committee report on the proposed Domestic Gas Reservation Scheme and calls on both the Government and Opposition to support passage of the legislation during the next sitting of Federal Parliament.

Chemistry Australia CEO Matthew Flügge said the legislation represents a critical opportunity to build confidence and certainty for Australia's gas consumers and secure the feedstock needed to support manufacturing and investment across the country.

"These bills send a clear signal that Australia is serious about providing long-term energy security for households and businesses, while ensuring manufacturers have access to the gas feedstock required to produce the essential products that underpin urban and regional jobs and our economy," Mr Flügge said.

Mr Flügge said there has been significant misunderstanding about the proposed reservation model.

"Some would have Australians believe that a domestic reservation scheme would divert the majority of our gas away from export markets. The opposite is true. The proposal reserves just 20 per cent for Australian consumers and manufacturers while 80 per cent remains available for export and our trading partners.

"That 20 per cent will help deliver affordable energy, secure feedstock for chemical manufacturing and support the value-added industries that provide thousands of jobs for Australians.

"One of Australia's emerging industries is critical minerals and rare earths, but without critical chemicals to produce advanced materials, they are just rocks in the ground. Gas is also an essential feedstock for fertilisers and explosives, supporting two pillars of the Australian economy: agriculture and mining," Mr Flügge said.

Chemistry Australia supports the legislation as presented and urges Senators from across the Parliament to support its passage.

"After more than a decade of market dysfunction, countless reviews, reports, agreements and the closure of critical manufacturing assets, it is time for action," Mr Flügge said.

"Every major gas-producing nation prioritises domestic industry through policies that support affordable energy and local value-adding. This is critical to supporting small, medium and large businesses that use gas to make advanced materials for packaging, housing and healthcare.

"It is time to put Australia's domestic interest first and ensure 20 per cent of Australian gas supports Australian jobs, Australian manufacturing and Australian economic resilience."

Mr Flügge said the Domestic Gas Reservation Scheme strategic opportunity comes at a time when global supply chains are being reshaped by growing geopolitical uncertainty.

"Australia, our major trading partners and industry are all seeking greater supply chain resilience and secure access to energy, chemicals and advanced materials. Australia is uniquely positioned to provide all three.

"The 20 per cent reservation requirement creates an opportunity to reposition Australia from being primarily an exporter of raw gas to becoming a trusted supplier of high-value chemicals, advanced materials and manufactured products for domestic and international markets.

"It sends a powerful signal that Australia intends to maintain a strategic gas reserve that supports domestic manufacturing, encourages investment and strengthens, rather than weakens, our position in regional and global supply chains.

"The choice before Parliament is simple: continue exporting opportunity overseas or use 20 per cent of Australia's natural gas advantages to create jobs, investment and industrial growth here at home," Mr Flügge said.