The Gas Market Review was a joint effort with the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
The review focussed on the effectiveness of current policies and regulations including:
- the Australian Domestic Gas Security Mechanism (ADGSM)
- the Heads of Agreement (HoA) with east coast liquified natural gas (LNG) exporters
- the Gas Market Code.
It also looked at opportunities to streamline the regulatory approach and optimise gas market efficiency and transparency. This aimed to ensure it remains fit for purpose throughout the transition to net zero.
Consultation with the public and stakeholders informed the review.
Review findings and report
The Australian Government has accepted the findings and recommendations in the report. It will implement fundamental reforms to improve the gas market framework and provide long term regulatory certainty for all stakeholders.
The government will develop a prospective gas reservation policy to secure domestic supply while continuing to support LNG trade. This is likely to be based on an export approvals approach.
The reservation scheme will require a portion of production to be reserved for Australian gas users. This will ensure commercial, industrial and household customers have access to the gas they need.
Details of the scheme will be developed in 2026 in consultation with industry and trade partners. We will hold a public consultation process before finalising any reforms.
The reservation scheme is likely to come into effect in early 2027.
To ensure that reserved gas is available and accessible, the government will also implement reforms to improve the way gas is bought and sold in Australia. This will be by enhancing market functions and trade efficiency.
