Plans under way to extend the ADGSM
PERTH (miningweekly.com) – The federal government is looking to extend the Australian Domestic Gas Security Mechanism (ADGSM) until 2030 to ensure the mechanism is available to help secure ongoing domestic gas supplies in the next decade.
Minister for Resources and Northern Australia Madeleine King said the existing ADGSM was an important tool that the government could use to ensure ongoing security of Australia’s domestic gas supplies, but that it had some clear shortcomings. It is currently due to expire at the start of January 2023.
King previously announced a separate review of the ADGSM to ensure the mechanism is fit for purpose.
The ADGSM was introduced in 2017 in response to a forecast gas supply shortfall in the eastern domestic gas market, and allows the government the ability to restrict liquefied natural gas (LNG) exports to secure domestic supply.
A 2020 statutory review to assess if the ADGSM was still fit-for-purpose found that the mechanism had been working effectively to safeguard domestic gas supplies.
This current consultation is on the extension of the existing ADGSM as required by law.
“The government is committed to ensuring affordable, reliable and secure energy for Australian households and businesses,” King said.
“We are opening public consultations on extending the ADGSM to January 1, 2030, to ensure the government continues to have access to the emergency mechanism to reserve gas for domestic supply in times of a supply shortfall.
“The extension will ensure we continue to have the mechanism available to us while we review how the ADGSM can be improved.
“The current ADGSM is a complex mechanism that would, if invoked, take a long time to produce results. The government is determined to make sure the ADGSM can work as an effective tool to enable Australians to have access to affordable energy.”
The government would also renegotiate the heads of agreement with east coast LNG producers, said King.
The Minister will hold top-level meetings with Australia’s major gas suppliers during the consultations, as well as key international counterparts.
“Australia remains a long-term and reliable supplier of resources and energy, and is a crucial supplier of LNG to our trading partners in north Asia. We remain committed to contributing to global energy security and working with international partners to address current global challenges,” King said.
“I will continue to work with industry and market bodies to seek solutions to current challenges facing the east coast gas market.”
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation