Unintended consequences of Australia's gas market intervention

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09 August 2017

Unintended consequences of Australia's gas market intervention

Report summary

The Australian Government has implemented a gas export restrictions policy, the Australian Domestic Gas Security Mechanism (ADGSM), to try to alleviate public and industry concerns regarding domestic gas supply availability in the eastern states. The policy presents a number of risks for gas producers, LNG buyers, as well as domestic gas buyers. In this opinion piece, Saul Kavonic provides an overview of risks and unintended consequences the policy may pose for stakeholders and policy makers.

Table of contents

  • Creating uncertainty, when certainty is needed most
  • Unlikely to increase domestic gas supply
  • Inviting the wrong kind of commercial behaviour
  • The road to price controls
  • Queenslanders and tax revenue take a hit
  • Sets a precedent putting Australia's future gas security at risk
  • Raising Australia's above ground risk profile
  • Risk of blackouts could re-emerge
  • The upshot

Tables and charts

This report includes 2 images and tables including:

  • Price breakdown of Queensland gas diversions to end user
  • East coast domestic gas supply

What's included

This report contains:

  • Document

    Unintended consequences of Australia's gas market intervention

    PDF 326.91 KB

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