Australia Steps Up to Secure Gas Supply Amid Global Disruptions

Australia may implement its gas security policy to ensure domestic supply for the east coast due to potential shortages during winter. The government is considering activating the Australian Domestic Gas Security Mechanism, prioritizing local over international gas supply amid global disruptions linked to the Middle East conflict.

Australia is considering invoking its gas security policy to protect domestic supply amid global energy disruptions. The move comes as authorities warn of potential shortages on the east coast during winter. Resources Minister Madeleine King indicated that the government might use the Australian Domestic Gas Security Mechanism (ADGSM) to ensure local supply is prioritized over international exports.

The ADGSM requires gas exporters to offer uncontracted gas to the domestic market before supplying international buyers, ensuring that Australians do not pay more than foreign customers. A final decision will be made next month following consultations with major gas producers.

This action follows a warning from Australia's competition watchdog about tightening wholesale gas supply. Despite the notice of intent, Minister King assures that the mechanism would not impose limits on exports, affirming Australia's capability to meet its international commitments.

(With inputs from agencies.)