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 on 1 August announced plans to extend the emergency gas measure following public and industry consultations. The mechanism was due to expire on 1 January next year.
Minister 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,” Minister King said.
“There will be a further review of the mechanism in 2025.”
Top Australian Brokers
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 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.
Minister 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.
Originally published by The Hon Madeleine King MP Minister for Resources and Minister for Northern Australia.