The Australian Government has signed a new Heads of Agreement with East Coast LNG Exporters to prevent a gas supply shortfall and secure competitively priced gas for the domestic market.
The negotiations ensure additional gas supply, improving security and affordability of domestic gas supplies in future years, while also introducing transparency measures to improve the information available to customers.
In July, the Australian Competition and Consumer Commission forecast a gas shortfall of 56 petajoules (PJ) for the domestic market in 2023.
The new commitments from LNG exporters will lead to an extra 157 PJ for the domestic market in 2023, with the gas to be supplied in line with seasonal demand.
The new Heads of Agreement includes:
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- LNG exporters to first offer uncontracted gas to the domestic market, on competitive terms, with reasonable notice, before exporting;
- in respect of uncontracted gas, the principle that domestic gas customers will not pay more for the LNG exporters’ gas than international customers;
- commits LNG exporters to offering gas on terms consistent with a code of conduct;
- enhanced transparency and accountability, with quarterly compliance reporting to the Minister for Resources, with oversight by the competition regulator the ACCC.
Minister King will meet every quarter with each east-coast LNG exporter to review whether they are meeting their individual commitments and ensure they are compliant with the Code.
The new Heads of Agreement was signed by Minister King and representatives from Australia Pacific LNG (APLNG), QGC Pty Ltd (operator of QCLNG), and Gladstone LNG (GLNG).