Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Hansard source

I thank Senator O'Sullivan for his question, as I know he realises, as many do in this chamber, that gas markets in this country are undergoing significant change. We are about to become the world's largest exporter of gas, an enormous turnaround in just less than 10 years. That is putting some pressure on gas markets in this country. I know many of us here in this chamber would be hearing from businesses about the impacts of price and availability of gas, as I was myself a few months ago in north-east Victoria with Senator McKenzie. We visited a range of businesses, including Uncle Tobys in Wahgunyah. They told us about the big increases in prices they are experiencing. The government has heard those issues.

We also received a report in March from the Australian Energy Market Operator describing that shortfalls are emerging in gas markets. The very next week we convened a meeting with the gas industry and with the Prime Minister to discuss those matters. At that meeting we got a commitment that gas would be made available at times of peak electricity demand, as, at particular times of peak demand in electricity markets, gas is needed to keep the lights on. Over the last few months, after further discussion with the gas industry about getting more supply of gas, we have determined to introduce regulations to license the export of gas in this country. It is a drastic action for a government to take. It is one we have not taken lightly, but we have done so, keeping in mind the importance of jobs here in this country, industry in this country and affordable energy in this country as well.

We are determined to make sure that Australian consumers of gas pay no more than what is reflected on international markets. We can have both a strong export market for gas and affordable gas in this country. Last week we published draft regulations, some explanatory statements, and guidelines that will govern the implementation of our Australian domestic gas security mechanism. It will be in place by 1 July. We are currently consulting with industry about those measures.