The federal government is weighing up new curbs on gas exports to shore up local supply, amid an ACCC warning that southern states face critical shortfalls from late 2025.
On June 30, federal Energy Minister Chris Bowen launched a new review into the gas market.
The move follows a warning from the competition watchdog that if Queensland LNG producers exported all uncontracted gas, households and businesses in states across the south would face shortags.
That includes Victoria, South Australia, and Tasmania.
New Rules to Prioritise Australians
The government’s latest Gas Market Review will examine how regulatory mechanisms—such as the Australian Domestic Gas Security Mechanism (ADGSM), the Gas Market Code, and the Heads of Agreement with major exporters—can be consolidated to ensure affordable and adequate gas supply to domestic users.Bowen stressed that Australia would not renege on existing export contracts, warning such a move would damage the country’s international reputation.
“One thing we won’t contemplate is ripping up existing contracts, creating sovereign risk … we won’t be doing that,” he told reporters in Canberra outside Parliament House.
“But what we will be looking at is sensible, forward-looking, prospective means to ensure that Australians get access to their gas.”
Gas remains vital as a firming power source to complement renewables, with the Albanese government aiming for an 82 percent renewable share of the electricity grid.
Australia Pushes for COP31 Amid Turkish Roadblock
Bowen also reaffirmed Australia’s bid to host the COP31 climate summit in Adelaide in 2026, saying the country enjoys “very, very strong support” from partners including the UK, Iceland, New Zealand, and western European nations.However, the process remains stalled due to a lack of consensus, with Turkey yet to withdraw from the race.
“This is a remarkable opportunity for Australia—the world’s largest trade fair,” Bowen said.
A final decision is expected by the COP30 conference in Brazil this November.
