Resources Minister Madeleine King says Australia’s domestic gas security mechanism will be extended and improved.
In place since 2017 and due to expire on January 1,2023,the mechanism aims to secure enough natural gas for domestic needs in Australia at times the resource is in short supply. It can do that by imposing an export limit on the nation’s liquified national gas projects or allowing them to find new gas sources.
“We have resolved today as a cabinet to make sure that mechanism remains a tool of government to ensure future supplies of gas in this country,” King said.
“We will move as quickly as possible and make sure that the gas security mechanism for domestic suppliers is renewed as soon as possible through regulation.
“At the same time,we will be conducting an urgent review of the domestic gas security mechanism to make it actually work ... Right now,it is a long and complicated,convoluted,ineffective mechanism that takes a very long time for it to produce results.
“We are determined to change that,and we’re determined to make sure that this mechanism,as well as the other tools available to us,are all on table so that we can ensure that gas supplies are appropriate,adequate and affordable for Australians right across the country.”
Energy Minister Chris Bowen said the Australian Energy Market Operator’s (AEMO) gas reserves wouldn’t be available to help ease the current issues,but would be invaluable in future.
He said AEMO would be in charge of purchasing the gas and storing it. Although based in south-east Australia,any gas fed into the system would ease prices everywhere,he said,promoting its benefit across the whole country.
“We’re not going to be able to purchase and store gas overnight,” Bowen said.
“That is true. There are some rule-making changes[that need to happen before it can be purchased]. But if we had this capacity last week,it would have helped.”