First steps taken for new gas rules
MINISTER for Resources and Northern Australia Senator Matt Canavan gave formal notice to liquefied natural gas producers yesterday that he intends to consider whether 2018 will be a gas shortfall year as part of a new gas policy.
The Australian Domestic Gas Supply Mechanism allows the Government to intervene, if necessary, to ensure there is a sufficient supply of natural gas for Australians.
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It will do this by requiring LNG projects which are drawing gas from the domestic market to limit exports or find offsetting sources of new gas.
"The ADGSM is a ... last resort to be applied in accordance with our international trade obligations," he said.
Senator Canavan said he will begin consulting with the Australian Energy Market Operator, the ACCC and major gas producers and users to determine if 2018 will be a shortfall year.
"The mechanism will balance domestic gas market considerations with the operational and planning requirements of a globally integrated and highly competitive export industry."