The Australian Government seeks a gas market that:
Australian manufacturers, electricity generators, businesses and households should continue to have access to internationally competitive gas prices.
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 supply shortfall in the domestic market, LNG projects may be required to limit their exports or find new gas sources.
The Minister for Resources, Water 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. It 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 Minister follows the Stepped Process and Timeframes for the ADGSM [548KB PDF].
Steps for the Minister to consider in the determination of a domestic shortfall year 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.
We released the ADGSM review in January 2020. Read the review report and recommendations.
The agreement helps to ensure secure and competitively priced gas supply for the east-coast domestic market. It requires east coast LNG exporters to:
Last updated: 27 September 2021
Content ID: 43371