The Australian Domestic Gas Security Mechanism (ADGSM) has been formally extended to 2030, ensuring the government can use the mechanism to safeguard domestic gas supplies.
Resources and Northern Australia Minister, Madeleine King, announced on 1 August plans to extend the emergency gas measure following public and industry consultations.
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.
The mechanism was due to expire on 1 January next year.
Ms King said regulations to extend the ADGSM to 2030 have now taken effect following formal approval by the Governor General.
“This extension will ensure the AGDSM 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 Ms King can now issue a notice of intent to make a determination to use the ADGSM next year, if needed.
Ms King said the government was continuing to negotiate a new Heads of Agreement with gas exporters, which will also safeguard Australia’s domestic supplies.
The government has also 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.
A discussion paper and information on the consultations are available on the Department of Industry, Science and Resources ADGSM reform web page.