Australia announces measures to safeguard gas supplies
The Australian government on August 1 outlined a range of actions to safeguard gas supplies in response to the latest Australian Competition and Consumer Commission’s (ACCC) gas report, which forecasts a 56 PJ shortfall to the east coast market for 2023. ACCC has urged east coast LNG exporters to increase gas supplies to the market.
Resources and Northern Australia minister Madeleine King announced she is preparing to issue a notice of intent to make a determination to invoke the Australian Domestic Gas Security Mechanism (ADGSM).
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The ADGSM gives the federal government the power to impose LNG export curbs. If the government assesses that there will be a shortfall in domestic gas supply in a calendar year and that LNG exports contribute to the shortfall, the exports will be restricted for that year. Since the introduction of the ADGSM in 2017, the Australian government has not declared a domestic shortfall year.
The minister also announced the government will extend the ADGSM until 2030, with a review due in 2025. The ADGSM is currently due to expire in January 2023.
“Based on the forecast shortfall, the government needs to see firm commitments out of the east coast LNG exporters,” King said.
“I will continue to work with gas and LNG producers, as well as state and territory governments to encourage new supply, and to find industry-led solutions to secure Australia’s ongoing energy needs,” she added.
The minister said that the government is talking with key trading partners to reassure them that Australia remains a trusted trading partner and a stable and reliable exporter of resources and energy.
King said it was important that east coast gas producers do their part to ensure adequate gas supplies are available to keep the lights on and businesses operating during our winter energy crisis.
Australia’s peak oil and gas body in a statement said sufficient gas is available for the market.