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Australia will make exporters of liquefied natural gas from the country's east coast keep up ‌to a quarter of their output ‍for domestic use from 2027, under a scheme unveiled on Monday to curb price spikes and help fill a long-forecast supply gap.The centre-left ⁠government of Prime Minister Anthony Albanese said it ⁠would work with exporters to design a system that allocates between 15% and 25% of gas for ‍domestic use.The announcement puts numbers on a policy that the government has flagged through 2025 amid persistent warnings about a shortage of gas supply on Australia's east coast, where most of its 27mn people live."More affordable Australian gas for Australian users will support our economy and our transition, while remaining a reliable energy partner to our region," said Climate Change and Energy Minister Chris Bowen.The proposal will only affect new contracts agreed by LNG exporters, not their existing contracts, Bowen said.Australia, the world's third-largest LNG ‌exporter, ships out far more gas than it consumes. The competition regulator warned on Monday that the expected local shortfall had widened, with output dropping from legacy fields off the south coast.The scheme was recommended by a gas market ‍review ordered by the government in mid-2025, ⁠which was also published ‌Monday.The review said a gas reservation scheme would put downward pressure on prices and urged the government to consider ending a A$12 ($7.94) per gigajoule price cap in place since 2022.The scheme would impact three LNG export plants in Queensland, particularly Gladstone LNG (GLNG), industry watchers have said.GLNG, operated by Santos and backed by Korea Gas Corp (KOGAS), TotalEnergies and Malaysia's Petronas, has typically relied on third-party domestic gas to meet export commitments. A GLNG representative was not immediately available for comment.Rival export consortium Australia Pacific LNG (APLNG), led by Origin Energy with ConocoPhillips and Sinopec, was also unavailable for comment.Shell, which leads a third exporter Queensland Curtis LNG (QCLNG) with CNOOC and MidOcean Energy, called the scheme "an important first step" and said it looked forward to work on the details.Producers and energy users welcomed the certainty they ​said the scheme would bring, pending details ‌still to come. Industry body Australian Energy Producers, whose members include LNG exporters, called for more action to spur domestic production.The wording of the reservation ⁠announcement suggests it could for the first time ‍capture Northern Territory gas, potentially affecting the Barossa and Ichthys projects and therefore Japanese investment, said Saul Kavonic, head of energy research at MST Marquee.JY Chew, Head of APAC Upstream Research at consultancy Welligence Energy Analytics, said the measure could reduce producers' export options and returns on marginal projects."LNG buyers negotiating new long-term contracts from 2027 may diversify more actively, knowing a portion of future Australian output will be reserved for domestic buyers," he added.About 90% ​of Australia's LNG exports go to Japan, South Korea, China and Taiwan, Kpler data shows.While Japanese LNG buyers have been diversifying to US supplies amid concerns over Australian supply, proximity remains a key advantage for Australian LNG, said Filippo Pedretti, an analyst at Yuri Group consultancy."I find it hard to imagine that such volumes and logistical convenience could be significantly replaced," he said. "One way or another, I think Australian imports will remain important, and Tokyo and Canberra will find a middle ground."Western Australia has an existing policy requiring LNG exporters there to keep 15% of volumes for domestic supply. 

The shortage of air traffic controllers keeping watch over America’s skies prompted the Federal Aviation Administration to embark on a massive recruitment drive.Now, the FAA has another problem: There are not enough instructors to teach all those new recruits the ropes.Teachers at the FAA’s training academy in Oklahoma City, mostly retired former controllers in their 60s, are increasingly required to work from 7am to midnight, powering through with endless cups of coffee they pay for themselves.Although a new labour contract has boosted instructors’ pay and benefits somewhat — many work part time, earning about $46 an hour — their daily grind isn’t getting any easier as an influx of fresh recruits into the academy has put additional strain on teachers, according to shift schedules and emails obtained by Bloomberg News and interviews with eight current academy instructors who requested anonymity as they’re not authorised to speak to the media.July saw the highest number of academy students in the FAA’s history (550), and August and September could top that. Schedules obtained by Bloomberg News show a sharp rise in the number of double shifts required for instructors, most of whom who are employed by the federal contractor Science Applications International Corp (SAIC), not by the FAA. They teach aviation basics, complex air-traffic scenarios and other courses during the recruits’ two months of training.On March 6, for example, just six of the 105 instructors who teach one facet of the academy curriculum and were on duty that day had a double shift. A preliminary schedule for September 2, distributed in late August, showed 42 instructors from the same group assigned to doubles. (That figure could change slightly as schedules get finalised.) While some instructors request double shifts, in order to make as much money as possible in a short period of time, others refuse.“Due to the surge in hiring for the last 4-5 months of FY25, we will be averaging significantly higher student requirements,” Richard Klumpp, a program management senior director at SAIC, said in a July 30 email viewed by Bloomberg News. “We have way more work than we have instructor availability in September thru mid-December.”In the email, Klumpp also expressed his “concern” in having enough instructors “to help reduce the doubles load on the team.” That load results in some instructors “walking around like zombies,” according to one instructor. A spokesperson for SAIC declined to comment.Some of the instructors who spoke to Bloomberg News said they decline to work double shifts out of concern for their physical and mental health. (At least one teacher at the academy is well into his 80s.) Many of them said they don’t need the extra money, as they earned six-figure salaries before reaching the mandatory retirement age of 56 for air traffic controllers and are financially secure. They teach because they enjoy the job and the camaraderie among instructors, or simply to ward off boredom.“Most of the people who work choose to, it’s not because they have to,” said Andrew Hudson, a financial adviser who works almost exclusively with air traffic controllers. “These people just don’t want to sit around all day.”The FAA was short about 3,900 certified air traffic controllers at the close of its 2024 fiscal year in October, and has said it anticipates it will hire about 2,000 controllers this fiscal year after speeding up the hiring process and boosting salaries for trainees. It expects to hire at least 8,900 controllers through 2028, but admitted in a recent workforce report that “the number of instructors at the FAA Academy creates a practical limit” on the number of trainees that can move through the system.US Transportation Secretary Sean Duffy has said he wants to plug the gaps in instructors amid the surge of trainees by using teaching assistants and other “expert educators” who aren’t former controllers. Those other instructors will begin work in a few months after getting hired and trained. The FAA has research showing they can perform the job just as well as former air traffic controllers, but declined to share it.Several longtime instructors, though, said those substitutes can’t provide the know-how that only comes from years of experience as a controller. Academy classes include basic tabletop exercises with model planes along with more technical instruction on the FAA’s air-traffic tracking and management system, known as ERAM. The FAA is also reviewing the academy curriculum, and could make changes that would reduce the number of instructors required for some courses.Some instructors have recently quit, others are considering doing so, and replenishing the ranks isn’t easy as there’s often little incentive for retired controllers to commute back and forth every few months from, say, Florida or New York, to Oklahoma City. Although instructors say they enjoy teaching the next generation of controllers, persuading former colleagues to ditch their grandkids and golf courses to join them can be a significant recruitment challenge.The previous collective bargaining agreement between SAIC and the International Association of Machinists and Aerospace Workers (IAM), the union that represents 317 academy instructors, provided a $60 daily reimbursement for those who didn’t live in Oklahoma City. But that amount only went so far, leading many instructors to rent an apartment in Walnut Gardens, about a 30-minute drive to the FAA Academy.The new labour agreement raises the daily reimbursement to $90 in January and provides 3% wage increases annually over the three-year contract, which works out to an additional $1.40 or so per hour from the $46.73 per hour many instructors earn now. (Those who teach basic courses make less.) The IAM called it a “major step forward” but said “we still have some work to do to help us recruit and retain instructors while improving quality of life for a workforce that has carried a heavy load to meet the mission.”Instructors who work double shifts often don’t get to sleep until 1am, then might need to get back up around 5am to get to the academy during rush hour for a morning class, or another double shift. Many admitted that it’s impossible to give students their“The thing nobody knows about us is we’re all voluntary — we do not have to be here,” one instructor said. “I can quit today and I’m done.”