Submission in response to the proposed extension of the ADGSM to 2030

Department of Industry, Science, Energy and Resources is seeking views on the extension of the Australian Domestic Gas Security Mechanism (ADGSM) to operate past 1 January 2023, until 1 January 2030.

The ADGSM is in place to ensure a sufficient supply of natural gas to meet the forecast needs of energy users in Australia. If there is a domestic supply shortfall, LNG projects may be required to limit their exports or find new gas sources.
The Minister for Resources is responsible for deciding if a shortfall market exists. The decision is informed by expert advice from:
- Australian Energy Market Operator (AEMO)
- Australian Competition and Consumer Commission (ACCC)
- industry and other government sources.

The ADGSM sits within Division 6 of the Customs (Prohibited Exports) Regulations 1958. It came into effect on 1 July 2017.

Details about the operation of the ADGSM are in the Customs (Prohibited Exports) (Operation of the Australian Domestic Gas Security Mechanism) Guidelines 2020. New Guidelines came into force on 6 January 2021.
The ADGSM will expire on 1 January 2023.

The government conducting public consultation on extending the operation of the ADGSM until 1 January 2030.

The Australian Government has also announced a review of the ADGSM to consider possible changes or alternatives to the existing mechanism.
The government is interested in receiving feedback relating to:
- extending the ADGSM to 1 January 2030
- other options to deliver the desired outcomes.

Submissions close on 19 July 2022 and will inform advice to the government on the extension.