The Australian Government has announced it will not activate the Australian Domestic Gas Security Mechanism (ADGSM) for the July to September 2023 quarter.
The decision was informed by new data from the Australian Competition and Consumer Commission (ACCC). The data forecasts improved market conditions and excess uncontracted gas available during 2023.
This means the government is confident:
- Australia’s gas market is likely to have enough supply for the July to September quarter
- any supply shortages can be addressed without reducing gas exports.
The ADGSM was recently reformed to let the government decide every quarter if a domestic gas shortfall is likely. If a shortfall is likely, liquefied natural gas (LNG) projects may need to limit exports or find new gas sources.
The reforms allow for more flexibility in addressing domestic gas supply shortfalls.