Gas underpins a wide range of economic activity in Australia and globally, with secure gas supplies being a core component of energy security. As set out in the Future Gas Strategy, the role of gas in our economy is changing with the energy transition underway. Gas will be important during the transition to net zero through its key role for industries unable to electrify or access other cost effective alternatives. It is also needed to firm renewable energy. 

Given the long term challenges and opportunities facing Australia’s gas markets, this review was established as a first principles examination of current policy settings. It considered how improvements to current gas market regulation could help ensure enough competitively priced gas is being delivered domestically, and how to optimise the efficiency, transparency and fairness of Australia’s gas markets to ensure they remain fit for purpose throughout the transition to net zero. 

The review has evaluated Commonwealth regulation – the Australian Domestic Gas Security Mechanism (ADGSM), the Gas Market Code (the Code) and the Heads of Agreement (HoA) with east coast liquified natural gas exporters – to ensure it is responsive to market shocks and near term risks, while providing a stable regulatory environment over the longer term.

While interventions have been effective to date in responding to forecast shortfalls, the central conclusion of the Review is that current policy settings need to evolve to better address the long term, structural challenges facing Australian gas markets.

This report provides a range of findings and recommendations relating to:

• supply, security and trade
• gas prices
• market conduct and efficiency
• market transparency
• governance and reporting
• transitional and other matters.