The government of Queensland state is considering forcing companies exporting the state's coal seam gas reserves to keep a certain quantity of gas aside for the domestic market.

In a paper, called Blueprint for Queensland's LNG Industry, released Thursday, the government said it is considering two options to ensure the state has enough gas to meets its future electricity generation needs.

One option would be to require producers to sell or make available to the domestic market "the equivalent of between 10% and 20% of gas production".

A second option would be to establish a land reserve that could hold back certain gas production areas for domestic use, it said.

The paper also said the government has decided to retain the current royalty rate on coal seam gas production of 10% of its wellhead value.

Public comment will be sought for a month and a final government decision will follow "as soon as possible thereafter", it said.

-By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com