A review into Australia’s gas market regulations aims to ensure sufficient domestic supply in the future.
Federal Energy and Climate Change Minister Chris Bowen said the review would take a comprehensive and methodical look at measures introduced by successive governments to safeguard Australia’s energy supplies and prices in order to build a cleaner, fairer and more reliable energy system.
Minister Bowen said the goal was to ensure Australia’s long-term access to affordable gas, while maintaining a reputation as a reliable export partner that supported the region’s energy security.
“The review will also help deliver on the Government’s Future Gas Strategy, released in 2024, which spells out the role gas will play alongside renewables, batteries and pumped hydro in securing Australia’s energy future, while also supporting our trading partners as they work towards net zero commitments,” he said.
Minister Bowen said the recent ACCC Gas Inquiry report confirmed short-term gas supply was sufficient, but there was a need for further investment in the longer term.
“Using this review we’re working towards ensuring our gas market and the regulations which govern it are fit for purpose and deliver in the national interest.”
He said the Government would consult with industry, stakeholders and the public on the following instruments:
- The Australian Domestic Gas Security Mechanism (ADGSM).
- The Gas Market Code.
- The Heads of Agreement with major east coast gas exporters.
“The Government is examining whether these instruments can be improved and strengthened to ensure sufficient affordable gas supply in the longer term.”
Minister Bowen said a key objective would be to consolidate and streamline these instruments and create a long-term stable regulatory environment while supporting domestic energy security and affordability.
“We will also consider the role of the various market bodies, and how best to encourage sustainable investment that improves the supply outlook and puts downwards pressure on prices.
“Gas has an important role to play in our energy system as we transition towards 82 per cent renewables. Unlike coal, gas power generators can be turned on and off in a couple of minutes – providing the ultimate backstop in our energy grid.”
