The Australian Government is seeking comments on proposed changes to the Australian Domestic Gas Security Mechanism (ADGSM), which will guarantee that Australia has enough gas to meet domestic demand while safeguarding long-term international agreements.
The ADGSM, which was developed by the previous administration, is seen as not the most effective way to address the energy situation that Scott Morrison has left behind.
Madeleine King, Minister for Resources and Northern Australia, stated that changes to the mechanism, set to take effect on April 1, will give the government more leeway to employ it if necessary in the case of a predicted shortage in domestic supplies.
“The changes we announced last year, after widespread consultation with stakeholders, will deliver more flexibility and mean decisions to activate the ADGSM can be made every quarter, rather than only once a year under the old regulations,” Minister King said.
Minister King added the changes will strike a compromise between the requirement to ensure adequate domestic gas supply and the preservation of Australia’s international standing as a steady and dependable energy supplier to regional partners.
“The best protection for long term contracts is a situation where the domestic market is well supplied and there is not a predicted domestic shortfall,” the minister noted.
Established in 2017, the ADGSM collaborates with the Commonwealth and east coast LNG exporters on a voluntary, industry-led Heads of Agreement that commits an additional 157 PJ of gas to the domestic market in 2023.
More information about the reforms and consultation can be found on the consultation hub web page of the Department of Industry, Science, and Resources.
The consultation will end on 23 February 2023.
