The Australian Government has requested feedback on proposed changes to the Australian Domestic Gas Security Mechanism (ADGSM), ensuring that Australia has enough gas to meet domestic demand while protecting long-term international commitments.
According to the Federal Government, the ADGSM was designed by the previous government and is not well adapted to dealing with Scott Morrison’s energy dilemma.
Minister for Resources and Northern Australia Madeleine King stated that modifications to the mechanism, which are set to begin on 1 April, will provide the government greater flexibility to activate the mechanism if necessary in the event of an anticipated shortage in domestic supply.
“The changes we announced last year, after widespread consultation with stakeholders, will deliver more flexibility and mean decisions to activate the ADGSM can be made every quarter, rather than only once a year under the old regulations,” Minister King said.
Minister King added that the reforms would strike a compromise between the requirement to ensure adequate domestic gas supplies and Australia’s global reputation as a steady and trustworthy energy provider to regional partners.
“The best protection for long-term contracts is a situation where the domestic market is well supplied and there is not a predicted domestic shortfall,” Minister King said.
