Australian Domestic Gas Security Mechanism extension
The Australian Domestic Gas Security Mechanism (ADGSM) is in place to ensure there is a sufficient supply of natural gas to meet the forecast needs of energy users within Australia.
If there is a there is a forecast supply shortfall in the domestic market, LNG projects may be required to limit their exports or find new gas sources. The Minister for Resources is responsible for deciding if a shortfall market exists. The decision is informed by expert advice from:
- Australian Energy Market Operator (AEMO)
- Australian Competition and Consumer Commission (ACCC)
- industry and other government sources.
The ADGSM sits within Division 6 of the Customs (Prohibited Exports) Regulations 1958, which came into effect on 1 July 2017.
Details about the operation of the ADGSM are in the Customs (Prohibited Exports) (Operation of the Australian Domestic Gas Security Mechanism) Guidelines 2020. New Guidelines came into force on 6 January 2021.
The ADGSM will expire on 1 January 2023.
The Department of Industry, Science and Resources is conducting public consultation on extending the operation of the ADGSM until 1 January 2030. The government has also announced a review of the ADGSM to consider possible changes or alternatives to the existing mechanism.
The Department of Industry, Science and Resources is interested in receiving feedback relating to:
- extending the ADGSM to 1 January 2030
- other options to deliver the desired outcomes.
Submissions to this consultation process will inform advice to the government on extending the ADGSM.