The country is one of the world’s largest exporters of liquefied natural gas (LNG), a key fuel source in hot demand as war in the Middle East upends global energy markets.

In a bid to shield the nation from “global price volatility”, Australia’s largest gas exporters will be forced to set aside 20% of their export production for sale at home.

“We’ve been acting to shield Australians from global energy shocks by investing in reliable, sovereign renewables and keeping more of the gas we need onshore,” Bowen told reporters.

Australia is a major supplier of LNG throughout Asia, where prices have soared since the US and Israel launched strikes on Iran at the end of February.

Some 40% of Japan’s LNG comes from Australia, according to the Asia Natural Gas and Energy Association.

Bowen sought to soothe any concerns that the decision could hurt trading partners, saying: “We will not disturb any existing contracts.”

He added: “We have consulted closely with trading partners to ensure that it’s well understood around the world that Australia will always be a reliable supplier of energy.”

Geographically isolated and with only two oil refineries, Australia is heavily exposed to disruptions to global fuel supplies.

With Iran halting a fifth of world fuel shipments through its effective closure of the crucial Strait of Hormuz, Australia has moved to shore-up its fuel security.

Prime minister Anthony Albanese announced Wednesday that Canberra would establish a national fuel stockpile of one billion litres.