Domestic gas supply

The Australian Government seeks a gas market that:

• benefits all Australians
• strengthens our economy through liquefied natural gas (LNG) exports
• delivers gas at reasonable prices.

Australian Domestic Gas Security Mechanism

The Australian Domestic Gas Security Mechanism (ADGSM) ensures there is sufficient natural gas supply to meet the needs of Australian energy users. The ADGSM is a measure of last resort.

If a gas supply shortfall is forecast for Australia, liquefied natural gas (LNG) projects may need to limit exports or find new gas sources.

The Minister for Resources is responsible for determining whether a shortfall market exists. Their decision is informed by expert advice and information from:

• the Australian Energy Market Operator (AEMO)
• the Australian Competition and Consumer Commission (ACCC)
• industry and other government sources.

Legal framework, operations and guidelines

The ADGSM came into effect on 1 July 2017. Division 6 of the customs regulations and guidelines provide the legal framework for the ADGSM:

• Customs (Prohibited Exports) Regulations 1958
• Customs (Prohibited Exports) (Operation of the Australian Domestic Gas Security Mechanism) Guidelines 2023

The Minister for Resources and east coast LNG exporters negotiated the Heads of Agreement in good faith. It is in place until 1 January 2026.

The objective of the agreement is to prevent a gas supply shortfall through access to secure and competitively priced gas for the east coast domestic market. Under the agreement, the East Coast LNG exporters commit to supply sufficient, competitively priced gas to Australian users.

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