The Federal Government will extend its Australian Domestic Gas Mechanism (ADGSM) to 2030 following public and industry consultation, in an effort to ‘safeguard’ future domestic gas supply.
The ADGSM is a measure of last resort which allows the Government, in the event of a predicted shortfall, to restrict exports to ensure enough gas is available for domestic use.
Due to expire January 1 of next year, the ADGSM was formally extended by the Federal Minister for Resources and Northern Australia, Madeleine King, earlier this month.
Following approval from the Governor General, regulations to extend the mechanism are now in effect.
“This extension will ensure the ADGSM remains a lever for the government to use to help safeguard our domestic gas supplies and to ensure energy supplies to Australian households and businesses,” Ms King said.
“There will be a further review of the mechanism in 2025.”
The extension to 2030 means Minister King can now issue a notice of intent to make a determination to use the ADGSM next year, if needed.
Ms King said the Federal Government was continuing to negotiate a new Heads of Agreement with gas exporters, which will also safeguard Australia’s domestic supplies.
In addition, the Government held consultations on possible reforms to the ADGSM to improve the mechanism and enable it to be used at short notice in the event of a forecast gas shortfall.
