During October 2019, the Australian Petroleum Production and Exploration Association (APPEA) lodged two major policy submissions: one to the Australian Domestic Gas Security Mechanism (ADGSM) and another to the COAG Energy Council.
APPEA has made a submission to the ADGSM 2019 Review, which can be found here.
Industry reiterated its position that the ADGSM is unnecessary, and there have been no shortfalls during the period it has been in operation and none forecast.
The industry has responded to perceived shortfalls and ensured the domestic market is well supplied.
APPEA has also highlighted that such interventionist measures significantly increase sovereign risk and impact investor confidence.
APPEA has also made a submission to the COAG Energy Council Regulation Impact Statement (RIS) for consultation on Measures to Improve Transparency in the Gas Market. The submission can be found here.
The industry supports the objective of increasing transparency in the gas market when done properly.
Many of the measures in the RIS are inconsistent with good policy development and will unnecessarily increase the cost burden of reporting on the industry without any additional benefit to consumers.
APPEA also highlighted that the export-related measures will reduce industry competitiveness in global markets and affect investor confidence.
The industry said that much of the measures deal with reporting obligations that are already reported to state/territory agencies and therefore it would be prudent to streamline data sharing between the agencies, rather than duplicating the costly reporting burden for industry.