The Australian Domestic Gas Security Mechanism

The Australian Government intends to implement a new mechanism to allow it to take temporary and targeted action to safeguard Australia's domestic gas supplies.

The process for implementing the ADGSM is illustrated in the ADGSM Stepped Process. The ADGSM will enable the Government to invoke controls on exports of liquefied natural gas (LNG) when there are reasonable grounds to believe there will be an insufficient supply of natural gas for Australian consumers in a forthcoming calendar year.

The ADGSM has been designed as a targeted and temporary measure. Draft regulations and guidelines related to implementation of the ADGSM are available below:

Note the regulations and guidelines are drafts only. The Government intends to recommend to the Governor-General in Council that he agree to the draft regulations. The guidelines may be made by the Minister after the regulations have been agreed by the Governor-General. Once made, both documents will be registered on the Federal Register of Legislation.

Enquiries

Enquiries can be directed to Nicole Hinton, Manager, Onshore Gas: nicole.hinton@industry.gov.au.

Background

On 27 April 2017, the Australian Government announced the ADGSM.

The ADGSM is a critical part of the Government’s comprehensive work program to ensure the energy needs of Australian users are met. It will work along with other key gas market reforms underway including the Australian Competition and Consumer Commission (ACCC)’s gas market transparency work and the Peak Supply Guarantee given by gas producers.

A part of the 2017-2018 budget, the Government announced $93 million to increase gas production and support affordable energy prices.

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