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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 drawing gas from a domestic shortfall market results in an insufficient gas supply, LNG projects may be required to limit exports or find new gas sources.
The Minister for Resources and Northern Australia is responsible for making the decision as to whether a shortfall market exists. The decision is informed by expert advice from:
Our department provides advice to the Minister on policies and processes relevant to the Act and regulations.
The ADGSM sits within Division 6 of the Customs (Prohibited Exports) Regulations 1958. This was amended by the Customs (Prohibited Exports) Amendment (Liquefied Natural Gas) Regulations 2017.
Details about the operation of the ADGSM are in the Customs (Prohibited Exports) (Operation of the Australian Domestic Gas Security Mechanism) Guidelines 2017.
The ADGSM came into effect on 1 July 2017.
The Minister follows the Stepped Process and Timeframes for the ADGSM [548KB PDF].
Steps may include:
Restrictions will only apply if the Minister determines a shortfall year.
The ADGSM is designed to allow the Minister to take into account the availability of an industry-led solution which will provide more gas to the domestic market in an identified shortfall year.
Since the ADGSM came into effect, the following activity has taken place:
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Last updated: 14 August 2018
Content ID: 43371