Australia’s government intends to consider using emergency powers to protect domestic natural gas supply in case of a shortfall on its east coast in the third quarter of 2026.
The potential consideration of using such powers would be part of the steps the Albanese Government is taking to secure domestic gas supplies for Australian households and industry as the Middle East conflict disrupts global energy markets.
Australian Minister for Resources, 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, the winter months Down Under.
The minister 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 the middle of May, the government 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,” King said in a statement.
“The notice does not place any limits on gas exports. Currently, Australia’s domestic market is well supplied with Australian gas.”
Australia remains a reliable gas supplier to international partners, but if there is a risk of domestic supply shortfall, Australians will be priority for energy supplies during the disruption on the global markets caused by the war in the Middle East, the minister said.
On Wednesday, the Australian Competition and Consumer Commission (ACCC) said that wholesale gas supply on Australia’s east coast is expected to be tight and large volumes of gas will likely be required from storage to meet demand in the third quarter of 2026.
Apart from gas supply, Australia has moved to protect consumers from soaring fuel prices. Early this week, the government halved the fuel excise on gasoline and diesel for three months in a bid to alleviate financial stress from spiking fuel prices.
By Tsvetana Paraskova for Oilprice.com
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