Department of Industry, Innovation and Science
On 27 June 2017 the Australian Government made the Customs (Prohibited Exports) Amendment (Liquefied Natural Gas) Regulations 2017, which implemented the Australian Domestic Gas Security Mechanism (ADGSM).
The ADGSM establishes a framework for restrictions on the export of liquefied natural gas (LNG) from LNG projects, to be imposed where the Resources Minister determines there is a reasonable prospect of a supply shortage in the domestic market. The purpose of the ADGSM is to ensure that there is a sufficient supply of gas to meet the needs of Australian consumers, including households and industry, by requiring, if necessary, LNG exporters which are drawing gas from the domestic market to limit exports or find offsetting sources of new gas.
The Department of Industry, Innovation and Science prepared a Regulation Impact Statement (RIS) examining the changes. The Office of Best Practice Regulation (OBPR) assessed the RIS prepared by the Department as compliant with the Government’s requirements and consistent with best practice.
The RIS estimates the average annual regulatory cost of the AGDSM to be $180,000. The OBPR has agreed to the regulatory costs.