The Australian Domestic Gas Security Mechanism (ADGSM) is now in effect.
Minister for Resources and Northern Australia Senator Matt Canavan said the ADGSM would allow the government to intervene, if necessary, to ensure adequate gas is available to Australian homes and businesses.
The minister will use assessments including from the Australian Energy Market Operator (AEMO), the ACCC and industry to determine later this year whether 2018 will be a shortfall year, and whether export licences will be necessary from January 1.
“AEMO’s revised gas forecast shows that domestic gas supply and demand remain finely balanced,” Minister Canavan said.
“We need to be able to act should critical gas shortages arise that might impact on manufacturers and households.
“These forecasts are welcome but while the potential for gas shortfalls remains we’re not going to roll the dice on Australian jobs.
“Securing our domestic gas supply should also put downward pressure on the price paid by Australians and should help to achieve parity between local and international prices.”
Minister Canavan said the government’s longer term goal was to increase the domestic gas supply and boost competition, and improve transparency and efficiency of the gas market supply chain.
“This measure alone cannot solve all of these issues,” he said.
“That’s why we are spending more than $90 million to bring on new gas supplies as well as supporting affordable energy prices through gas market reform.
“The package includes $28.7 million to accelerate responsible development of onshore gas, delivering benefits to landholders and the community and providing better information on landholder rights and the environmental impact of gas development.”