Australia weighs securing domestic gas supplies as winter concerns grow

Australia said on Thursday it may invoke its gas security policy to safeguard domestic supply for its east coast as authorities warn of potential shortages during the winter months amid global energy disruptions linked to the Middle East conflict.

Resources Minister Madeleine King said the government was considering activating the so-called Australian Domestic Gas Security Mechanism (ADGSM) which would force exporters to prioritise local supply. A decision is expected next month following consultations with major gas producers.

The ADGSM mechanism requires gas exporters to offer uncontracted gas to the domestic market before international buyers and ensures Australian buyers are not charged more than foreign customers for such supplies.

"Australians will be a priority for energy supplies during the period of disruption caused by the conflict in the Middle East," King said in a statement.

She added that the notice of intent to consider using ADGSM does not place any limits on gas exports and that Australia remained well positioned to meet international commitments.

The move follows a warning on Wednesday from Australia's competition watchdog that wholesale gas supply on the east coast is likely to tighten over winter.

-Renju Jose/Reuters