This is the first step towards using that mechanism for next year.
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In another episode of gross negligence, the previous government failed to renew the Heads of Agreement as well.Īnd finally today I’m announcing that I am preparing to issue a notice of intent to make a determination as to whether to trigger the ADGSM – that’s the existing ADGSM. As I said, both of these instruments are due to expire in January. The Heads of Agreement is an agreement that ensures uncontracted gas is offered to Australian users in the first instance to help avoid a forecast shortfall. Like the existing ADGSM, the current Heads of Agreement will expire in January next year. Thirdly, today I announce the government will start negotiations on a new Heads of Agreement with major gas producers. The ADGSM reforms will be considered in line with the following seven key principles: ensuring sufficient supply of gas to the domestic market to support manufacturing and energy security putting downward pressure on to domestic gas prices maintaining Australia’s position as a leading contributor to global energy security respecting the trust trading partners and international investors have shown in Australia’s resources and energy sectors supporting the energy transition in line with Australia’s emission reduction targets enhancing transparency and processes that support competitive pricing outcomes for gas consumers and also minimising implementation costs and complexity for government and industry. It allows the government in the event of a predicted shortfall to restrict exports to ensure enough gas is available for domestic use. It’s a blunt instrument and it is a measure of last resort. The government wants to make sure that the ADGSM is improved, is fit for purpose and can be activated at short notice to help with the potential shortfall. It can only be used to avoid a forecast shortfall in the next calendar year. At present, as many of you know, this mechanism takes a long time to activate. Secondly I’m announcing that the government will open consultations on reforms to the existing ADGSM to ensure that it is an effective tool and is fit for purpose. Without having taken this action – one of the first decisions of the government – this mechanism would not be available for us to use. That work is currently underway and that process should conclude by later this month. This extension will be done by regulation. This announcement will ensure the ADGSM remains a lever for the government to use to help safeguard our domestic gas supplies. There will be a further review in 2025 of this mechanism and it’s ongoing longevity.
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The mechanism was due to expire in January next year, and we flagged our intentions to extend this mechanism in early June. Now I’m going to outline these responses in a clear order, so please do bear with me and we’ll take questions after that.įirst of all, I want to announce that after consultations with industry and stakeholders the government will extend the life of the Australian Domestic Security Gas Mechanism to January 2030. These measures will ensure that Australian householders and businesses will continue to have access to reliable energy into the future.
#LUNACY BREWING SERIES#
Today I’m going to announce a series of measures and actions in response to the ACCC’s warning. The ACCC report is an early warning of the potential problems we are facing in the energy market under the mess quite frankly left to us by the former government. That represents about 10 per cent of annual east coast demand for gas or around 14 LNG carrier cargos. The key ACCC finding is that Australia’s east coast gas market faces a potential 56 petajoule shortfall in 2023. I just want to start by acknowledging the Ngunnawal country and acknowledge elders past, present and emerging here in the parliament and across this district.Īs we all know the Treasurer has this morning released the latest interim report from the ACCC gas inquiry. MADELEINE KING: Good morning, everyone, and thanks for coming along this morning.