Gas producers warned to prove they have domestic supplies for next year, or face ‘gas trigger’ export restrictions

The Resources Minister has put gas producers on notice that the federal government intends to pull the “gas trigger” to restrict their exports, unless they can prove the nation does not face gas shortfalls in 2023.

Madeleine King says she will issue a notice to suppliers, the first step towards enforcing the Domestic Gas Supply Mechanism, directing them to provide a detailed response on supply and export forecasts for next year.

The consumer watchdog has warned that despite Australia’s abundant gas supplies, the outlook for next year was “very concerning”, with most of that supply slated for export.

It warned the government to consider intervening or face the risk of gas shortfalls in 2023.

The federal government has the power to force gas producers to restrict exports of their excess supply to ensure supply for the domestic market, known colloquially as the “gas trigger”.

The trigger was due to expire next year, but Ms. King says it will be renewed to 2030 and reformed so that it can be used at shorter notice.

The minister says she will make a decision in October on whether to proceed with imposing export controls.

If pulled, the gas trigger would come into effect from January next year.

Industry promises no gas shortfalls next year

The gas industry is attempting to ward off the threat of the government pulling the gas trigger, saying it has the supply to meet consumer demands next year.

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