The Albanese Government is taking steps to secure domestic gas supplies for Australian households and industry as the Middle East conflict disrupts global energy markets.

Minister for Resources and Northern Australia Madeleine King has given notice of her intention to consider using powers under the Australian Domestic Gas Security Mechanism (ADGSM) to protect Australian energy supplies in the event of a possible east coast domestic gas shortfall in the third quarter of 2026.

Minister King will consult with major gas producers over the next 30 days regarding supplies to the domestic market and will make a decision on whether to use the ADGSM by mid May.

The notice of intent follows the release of the ACCC Gas report which forecasts Australia’s gas supply for the third quarter faces a possible shortfall of 12 petajoules, including a potential shortfall of 10 petajoules in July.

“As we head into the winter months, the government is taking action to be prepared to face challenges,” Minister King said.

“My decision to issue a notice of intent is a precautionary measure that gives me the flexibility to intervene if Australia is at risk of facing an energy shortfall.

“The notice does not place any limits on gas exports. Currently, Australia’s domestic market is well supplied with Australian gas
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“The notice of intent ensures Australians will be a priority for energy supplies during the period of disruption caused by the conflict in the Middle East.

“This notice sends a clear signal: if there is any risk to Australian supply, the Government will act.

“Australia remains in a strong position to ensure gas is available for Australians as well as for our international partners.

“Australia remaining a reliable supplier of gas will help ensure Australia continues to receive the essential supplies we need from international partners.

“This measure is about ensuring the government has all tools available to assist Australians if we need to do so.

“I will continue to consult with gas producers and consult my Ministerial colleagues, and seek advice from my department, the ACCC and AEMO to determine whether Australia will remain well supplied, before making a decision on whether to invoke the ADGSM.

“To be clear, the ACCC has forecast a shortfall for the east coast gas market, which is the focus of my notification. Both the Western Australian and Northern Territory markets are not forecast to be in shortfall.

“Those consultations will seek an industry-led solution to prevent a forecast shortfall.”

The Albanese Government reformed the ADGSM following the spike in gas prices in 2022 after the Russian invasion of Ukraine, to make sure the measure could be used at shorter notice.