The Australian Government seeks a gas market that:
- benefits all Australians
- strengthens our economy through liquefied natural gas (LNG) exports
- delivers gas at reasonable prices.
Australian Domestic Gas Security Mechanism
The Australian Domestic Gas Security Mechanism (ADGSM) ensures there is sufficient natural gas supply to meet the needs of Australian energy users. The ADGSM is a measure of last resort.
If a gas supply shortfall is forecast for Australia, liquefied natural gas (LNG) projects may need to limit exports or find new gas sources.
The Minister for Resources is responsible for determining whether a shortfall market exists. Their decision is informed by expert advice and information from:
- the Australian Energy Market Operator (AEMO)
- the Australian Competition and Consumer Commission (ACCC)
- industry and other government sources.
Legal framework, operations and guidelines
The ADGSM came into effect on 1 July 2017. Division 6 of the customs regulations and guidelines provide the legal framework for the ADGSM: