Gas

On 12 August 2022, Energy Ministers agreed to take a range of actions aimed at supporting a more secure, resilient and flexible east coast gas market.

These actions include quick progression of measures to ensure the Australian Energy Market Operator (AEMO) can manage gas supply adequacy and reliability risks across east coast gas markets in the lead up to and during winter 2023.

• AEMO’s functions and powers will be extended to identify, signal and manage supply shortfalls in the east coast market in winter 2023. 
• AEMO will prepare an annual Winter Readiness and Management Plan, and incorporate gas system adequacy risks into their Summer Readiness Plan.

Consultation on the regulatory amendments to extend AEMO’s functions and powers, known as the east coast gas system framework (the new framework), occurred between 26 September 2022 and 21 October 2022.

Energy Ministers agreed in October 2022 to the amendments to the National Gas Law required to give effect to the new framework, with subsequent agreement to Regulations and Rules required to implement the new framework in February 2023.

Energy Senior Officials will continue work on longer-term reforms including to:

• design and consult on more formal tools which could sit under the supply adequacy and reliability framework to improve AEMO and market participants’ ability to identify and respond to emerging supply shortfall risks, and better manage periods of volatility
• develop and submit rule changes to improve the flexibility and liquidity of the east coast gas market to respond to demand and supply shocks
• further investigate options to extend a third party access framework for upstream gas infrastructure and storage facilities to enable more supply to market from smaller producers and improve utilisation of existing infrastructure.

Further information on the package of reforms can be found in the Summary of Measures document (PDF 693 KB).