The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Madeleine King MP, Minister for Resources
The Albanese Government will ensure Australia's long-term access to affordable gas alongside renewables, while maintaining our reputation as a solid and reliable export partner that supports our region's energy security.
Today the Government has opened a review into gas market regulations, taking a comprehensive and methodical look at key measures introduced by successive governments which have safeguarded Australia's energy supplies and prices as we build a cleaner, fairer and more reliable energy system.
The review will also help deliver on the Government's Future Gas Strategy, released in 2024, which spells out the role gas will play alongside renewables, batteries and pumped hydro in securing Australia's energy future, while also supporting our trading partners as they work towards net zero commitments.
The ACCC has today also released their latest Gas Inquiry report, once again confirming that short term gas supply is sufficient, but flagging the need for further investment in the longer term.
After a decade of ignored warnings from the ACCC and Australia's Energy Market Operator about supply shortages and failed promises from the Coalition for a COVID gas-led recovery, in just one term the Albanese Government has stepped in to now secure 644PJ of enforceable supply commitments for domestic gas under its mandatory Code of Conduct which came into effect in 2023.
Now, using this review we're working towards ensuring our gas market and the regulations which govern it are fit for purpose and deliver in the national interest.
The Government will consult with industry, stakeholders and the public on the following instruments:
- The Australian Domestic Gas Security Mechanism (ADGSM);
- The Gas Market Code; and
- The Heads of Agreement with major east coast gas exporters.
As is good policy practice and a requirement of the regulations, the Government is examining whether these instruments can be improved and strengthened to ensure sufficient affordable gas supply in the longer term.
A key objective will be to consolidate and streamline these instruments and create a long-term table regulatory environment while supporting domestic energy security and affordability. We will also consider the role of the various market bodies, and how best to encourage sustainable investment that improves the supply outlook and puts downwards pressure on prices.
The Gas Market Review's terms of reference, consultation paper, and information how to make a submission, are available on the Department of Climate Change, Energy, Environment and Water website via the Consultation Hub: https://consult.dcceew.gov.au/gas-market-review-consultation
Comment attributable to Minister for Climate Change and Energy Chris Bowen:
"Gas has an important role to play in our energy system as we transition towards 82 per cent renewables. Unlike coal, gas power generators can be turned on and off in a couple of minutes - providing the ultimate backstop in our energy grid.
"It's critical that we use this review get the settings right in our gas market, ensuring we are securing affordable Australian gas for Australian use, while remaining a reliable energy exporter and delivering lasting energy security in our region."
Comment attributable to Minister for Resources and Northern Australia Madeleine King:
"Our gas market settings have evolved over time and in response to a crisis of supply or price, or both, so the intent of this review is to carefully examine how our gas policies work for our economy as part of our energy transition.
"The Gas Market review aligns with implementation of the Future Gas Strategy and underpins the government's commitment to ensure householders and businesses can continue to have access to adequate supplies of affordable energy.
"At the same time, Australia has an important reputation as a global supplier of energy and a key partner in ensuring energy security in our region, helping our trading partners to achieve their net zero commitments.
"The review will also examine potential ways to attract more sustainable investment into the Australian industry to support jobs and our economic wellbeing."
