The Australian Government has proposed an extension of the Australian Domestic Gas Security Mechanism (ADGSM) until 2030 to ensure the mechanism can be available to help secure ongoing domestic gas supplies to the next decade.
Minister for Resources and Northern Australia Madeleine King said the existing ADGSM is an important tool that the Government could use to ensure ongoing security of Australia's domestic gas supplies, but has some clear shortcomings. It is currently due to expire on 1 January 2023.
Minister King has previously announced a separate review of the ADGSM to ensure the mechanism is fit for purpose.
This current consultation is on the extension of the existing ADGSM as required by law.
"The Albanese Government is committed to ensuring affordable, reliable and secure energy for Australian households and businesses," Minister King said.
"We are opening public consultations on extending the ADGSM to 1 January 2030, to ensure the government continues to have access to the emergency mechanism to reserve gas for domestic supply in times of a supply shortfall.
"The extension will ensure we continue to have the mechanism available to us while we review how the ADGSM can be improved.
"The current ADGSM is a complex mechanism that would, if invoked, take a long time to produce results. The Albanese Government is determined to make sure the ADGSM can work as an effective tool to enable Australians to have access to affordable energy."
The Government will also renegotiate the Heads of Agreement with east coast LNG producers.
Minister King will hold top-level meetings with Australia's major gas suppliers during the consultations, as well as key international counterparts.
"Australia remains a long-term and reliable supplier of resources and energy, and is a crucial supplier of LNG to our trading partners in north Asia. We remain committed to contributing to global energy security and working with international partners to address current global challenges," Minister King said.
"I will continue to work with industry and market bodies to seek solutions to current challenges facing the east coast gas market."
Information about the consultation process, and how to make a submission, is available on the Department's website at https://consult.industry.gov.au/adgsm-extension.
