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ACCC gas report ‘deeply concerning’, says Treasurer Jim Chalmers

Headshot of Danielle Le Messurier
Danielle Le MessurierThe West Australian
Resources Minister Madeleine King.
Camera IconResources Minister Madeleine King. Credit: Simon Santi/The West Australian

Resources Minister Madeleine King could be forced to intervene in the east coast gas crisis after a new report forecast dire gas shortages in the coming year.

The Australian Competition and Consumer Commission’s latest report from its inquiry into the nation’s gas supply projects a significant shortfall for next year unless gas producers can supply more uncontracted gas to the domestic market.

The watchdog warned that if all the excess gas of LNG exporters is sold in overseas markets, the domestic east coast gas market is likely to be 56 petajoules short of gas needed to meet forecast demand for 2023.

“This is a worse situation than that which occurred in 2017,” the watchdog warned.

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The ACCC said it supported the recent announcement by the Minister that the Federal Government would renew the Australian Domestic Gas Security Mechanism beyond January 1, 2023.

Known as the gas trigger, the ADGSM allows the Minister for Resources to determine if the following calendar year is likely to be a shortfall year in the domestic market and apply export controls on LNG exporters to limit the amount of gas they can export.

Treasurer Jim Chalmers described the report’s findings as “deeply concerning” and urged gas producers to “do the right thing by Australians”.

“It’s critical that our domestic gas supply is secure and competitively priced, particularly when households and businesses are under extreme pressure,” he said.

“The ACCC has raised concerns about the level of competition in this market, and I welcome its commitment to look into this and take enforcement action as required.”

Dr Chalmers also said the report responded to his request to the ACCC to boost its monitoring of energy markets and recommend regulatory changes that are needed.

“The Government takes these findings extremely seriously and will shortly respond to the ACCC’s recommendations,” he added.

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