Australia’s Federal Resources Minister Matt Canavan has announced to introduce a new gas reservation policy. Credit: Glen Dillon.

The Australian Government is planning to establish a new natural gas reservation policy to ensure that the country has sufficient gas supplies for domestic use.

Publishing a review of the Australian Domestic Gas Security Mechanism (ADGSM), federal resources minister Matt Canavan said he will work with his state and territory counterparts to develop a national gas reservation policy over the next 12 months.

Canavan said: “We can’t repeat the mistakes of the past in just letting our gas be shipped overseas with no thought to our domestic requirements.”

The ADGSM confirmed that Australia has enough natural gas reserves for projected domestic demand.

The review also found that the new policy will help to reduce the prices of domestic gas while contributing to more secured gas supplies for consumers in Australia.

ADGSM’s review also recommended the Australian Government to enhance the mechanism for securing domestic gas under the Total Market Security Obligation (TMSO).

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The government will further seek the opinion of stakeholders on the planned changes to the TMSO.

Canavan added: “The review confirms the measures taken by the government in 2017 have been instrumental in stabilising the domestic gas market and keeping a lid on gas prices.

“However, I recognise that some businesses are still finding it difficult to get longer-term gas offers and that some price offers remain higher than I want to see, especially when international LNG prices are low.

“That is why we will keep the ADGSM in place until its scheduled end in 2023 and the ACCC will continue to monitor the gas sector out until 2025.”

The state of Victoria has already a moratorium on conventional onshore gas exploration in the state until June.