The Australian Government has taken steps to safeguard domestic gas supplies for households and industry as ongoing conflict in the Middle East affects global energy markets.
Minister for Resources and Northern Australia, Madeleine King, has issued a notice of intent to consider using the Australian Domestic Gas Security Mechanism (ADGSM) if a shortfall occurs on the east coast in the third quarter of 2026.
The government will consult with major gas producers over the next 30 days and aims to decide on any intervention by mid-May.
The notice follows the release of the ACCC Gas report, which forecasts a possible shortfall of 12 petajoules in Australia’s gas supply for the third quarter, 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.”
Minister King emphasized that the measure is intended to ensure Australians are prioritised during periods of disruption. “This notice sends a clear signal: if there is any risk to Australian supply, the Government will act,” she said.
The government has indicated that both Western Australia and the Northern Territory are not expected to experience a shortfall. Consultations with industry will focus on seeking solutions to maintain adequate east coast supply without immediate government intervention.
The ADGSM was reformed following a spike in gas prices in 2022, to allow for quicker government action during potential supply disruptions.
“The ACCC has forecast a shortfall for the east coast gas market, which is the focus of my notification,” Minister King said. “Those consultations will seek an industry-led solution to prevent a forecast shortfall.”
The government has underlined that maintaining Australia’s reliability as a gas supplier internationally remains a priority, while ensuring domestic energy needs are met.
