Mech­a­nism to pro­tect do­mes­tic gas sup­ply

Chinchilla News - - NEWS -

THE Fed­eral Gov­ern­ment will force the coun­try’s LNG ex­porters to pro­vide more gas to the do­mes­tic mar­ket if there is a short­fall in sup­ply, thanks to a new leg­isla­tive mech­a­nism – the Aus­tralian Do­mes­tic Gas Se­cu­rity Mech­a­nism (ADGSM), which is now in ef­fect.

Min­is­ter for Re­sources and North­ern Aus­tralia, Sen­a­tor Matt Cana­van, said the Aus­tralian Do­mes­tic Gas Se­cu­rity Mech­a­nism (ADGSM) would al­low the gov­ern­ment to in­ter­vene, if nec­es­sary, to en­sure ad­e­quate gas is avail­able to Aus­tralian homes and busi­nesses.

The min­is­ter will use as­sess­ments in­clud­ing from the Aus­tralian En­ergy Mar­ket Oper­a­tor (AEMO), the ACCC and in­dus­try to de­ter­mine later this year whether 2018 will be a short­fall year, and whether ex­port li­cences will be nec­es­sary from Jan­uary 1.

“AEMO’s re­vised gas fore­cast shows that do­mes­tic gas sup­ply and de­mand re­main finely bal­anced. We need to be able to act should crit­i­cal gas short­ages arise that might im­pact on man­u­fac­tur­ers and house­holds,” Min­is­ter Cana­van said.

“These fore­casts are wel­come but while the po­ten­tial for gas short­falls re­mains we’re not go­ing to roll the dice on Aus­tralian jobs.

“Se­cur­ing our do­mes­tic gas sup­ply should also put down­ward pres­sure on the price paid by Aus­tralians and should help to achieve par­ity be­tween local and in­ter­na­tional prices.

“The LNG sec­tor is im­por­tant to our econ­omy, through its sub­stan­tial con­tri­bu­tions to GDP, em­ploy­ment and busi­ness op­por­tu­ni­ties in­clud­ing in many re­gional and ru­ral ar­eas.

“But sub­ject­ing Aus­tralians to gas short­ages while Aus­tralia be­comes the world’s largest LNG ex­porter, is sim­ply un­ac­cept­able.”

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