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- Policies and initiatives
Emissions reduction
Industry innovation and science
- Artificial intelligence
- Australian Radioactive Waste Agency
- Australian Space Agency
- Boosting innovation and science
- Co-hosting the Square Kilometre Array
- Increasing international collaboration
- Industry growth centres
- Industry Innovation and Science Australia
- National Measurement Institute
- Optical astronomy in Australia
- Participating in the digital economy
- Promoting innovation precincts
- Science in our department
- Science, technology, engineering and mathematics (STEM)
Energy
Resources
Northern Australia
Trade
Business support
Measurement services
Government to government services
- Regulations and standards
Emissions reduction
Energy
Resources
- Applying to export rough diamonds
- Applying to export uranium and controlled ores
- Offshore mineral exploration and mining
- Offshore oil and gas exploration and development
- Offshore petroleum exploration acreage release process
- Regulating offshore oil and gas in Australian Commonwealth waters
- Regulating the Ranger Uranium Mine
- Taxes and royalties on minerals and petroleum
Measurement
Trade
Space industry
Building industry
Business support
- Funding and incentives
Emissions reduction
Industry innovation and science
- Australian Square Kilometre Array Fellowships Programme
- Business Research and Innovation Initiative
- Business-research collaboration
- Collaborating with Asia-Pacific on science, research and innovation
- Collaborating with China on science and research
- Collaborating with India on science and research
- Cooperative research centres
- Enabling international space investment
- Industry 4.0
- Inspiring Australia: Science engagement in Australia
- International research collaboration
- Moon to Mars: opportunities for Australian businesses
- Prime Minister's Prizes for Science
- Research and Development Tax Incentive
- Supporting advanced manufacturing
- Supporting business and innovation
- Supporting space infrastructure growth
- Transitioning Australia’s automotive manufacturing industry
- Venture capital
Resources
- About us
COVID-19
Jobs
Who we are
- Our Ministers
- Our Executive team
- Organisation chart
- Our portfolio agencies
- Overseas engagement
- Anti-Dumping Commission
- Anti-Dumping Review Panel
- Australian Radioactive Waste Agency
- Australian SKA Office
- Australian Space Agency
- Critical Minerals Facilitation Office
- National Measurement Institute
- Office of Innovation and Science Australia
- Office of Northern Australia
- Office of the Chief Economist
- Office of the Chief Scientist
Who we work with
Reporting and accountability
- Annual report
- Assurance and Audit Committee
- Budget statements
- Campaign Certification Statements
- Continuing Order of the Senate
- Corporate plan
- Deregulation agenda
- Freedom of information
- Gifts and benefits register
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- Information Publication Scheme
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- Australian Domestic Gas Security Mechanism
On this page
Securing Australian domestic gas supply
The Australian Government seeks a gas market that:
- benefits all Australians
- strengthens our economy through liquefied natural gas (LNG) exports
- delivers competitive domestic gas prices
Australian manufacturers, electricity generators, businesses and households should continue to have access to internationally competitive gas prices.
Australian Domestic Gas Security Mechanism
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:
- Australian Energy Market Operator (AEMO)
- Australian Competition and Consumer Commission (ACCC)
- industry and other government sources
Our department provides advice to the Minister on policies and processes relevant to the Act and regulations.
Legal framework, operations and guidelines
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.
Operations and processes
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:
- the Minister issues a notification of intent to consider whether to determine a shortfall year
- the Minister may work with industry, government and market bodies about proposed LNG exports and the Australian gas market
- the Minister may make a determination as to whether export controls will apply
- any decision is made public with a statement of reasons
- LNG companies provide feedback
- export permissions may then be finalised
Restrictions will only apply if the Minister determines a shortfall year.
Industry-led solution
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.
Review of the Australian Domestic Gas Security Mechanism
We released the ADGSM review in January 2020. Read the review report and recommendations.
Agreement with east coast LNG exporters
A new Heads of Agreement [188KB PDF] [28KB DOCX] was negotiated between the Prime Minister and east coast LNG exporters. It is in place until 1 January 2023.
The agreement helps to ensure secure and competitively priced gas supply for the east-coast domestic market. It requires east coast LNG exporters to:
- offer uncontracted gas to the domestic market before exporting spot cargoes
- regard the ACCC’s LNG netback price when offering gas domestically
Read more
- The Prime Minister and Minister announced the new Heads of Agreement on 21 January 2021.
- The Prime Minister announced that a new agreement would be negotiated as part of the Government’s Gas-Fired Recovery on 15 September 2020.
- AEMO released its Gas Statement of Opportunities in 2020. They reported that under the current production and demand scenario, there will be no near term shortfall in the Australian east coast gas market.
- The ACCC’s interim report of their Gas Inquiry 2017-2020 confirmed there would be sufficient supply in the east coast gas market.
Contact us
Email ADGSM@industry.gov.au
Last updated: 21 January 2021
Content ID: 43371