Australian Domestic Gas Security Mechanism extension

DocuSign Envelope ID: DB05B1F4-AE54-419B-A250-315D312CB137

20 July 2022

Our Reference: APLNG - COR - 0014814

Department of Industry, Science and Resources
GPO Box 2013
Canberra ACT 2601

Via email: ADGSM@industry.gov.au

Dear Oil and Gas Division

RE: APLNG submission on the Australian Domestic Gas Security Mechanism
extension

Australia Pacific LNG Pty Limited (APLNG) welcomes the opportunity to provide feedback to
the Department of Industry, Science, and Resources (the Government) about extending the
Australian Domestic Gas Security Mechanism (ADGSM).

APLNG, an incorporated company owned by ConocoPhillips, Origin Energy and Sinopec, is
one of the largest producers of natural gas in eastern Australia, delivering a reliable energy
source to customers in Australia and Asia.

APLNG is additionally the largest net contributor of gas supply to Australia’s domestic east
coast gas market, providing gas directly to industrial customers in Queensland and to gas
retailers through long term gas supply agreements.

The ADGSM in its current form was designed to be a temporary supply security measure in
the event of a forecast domestic gas shortage. With the risk of domestic gas shortfalls being
forecast by the Australian Energy Market Operator, the new Federal Government’s response
to extend ADGSM was expected.

APLNG is a member of the Australian Petroleum Production & Exploration Association
(APPEA) and is supportive of the comments made by our peak national body and its
recommendation in relation to the period of extension.

We also note the Government has announced a future separate review of the ADGSM to
consider possible changes or alternatives. In 2019, APLNG participated in the Government’s
statutory review of the ADGSM (see submission here). While the gas market and economic
circumstances of 2022 are different, our view has not fundamentally changed.

Consistent with that view, in the event the ADGSM is extended, when considering changes or
alternatives, APLNG urges the Government to retain the core principle that producers such as
APLNG, who are already net contributors to the domestic market, are not adversely impacted
by the changes. APLNG is concerned that any change to that principle could have unintended
consequences for the domestic east coast gas market.

Australia Pacific LNG Pty Limited ABN 68 001 646 331
Level 4, 139 Coronation Drive, Milton, Qld, 4064
GPO Box 148, Brisbane, Qld, 4001 • Telephone (07) 3021 3300 • Facsimile 1300 863 446 • www.aplng.com.au
DocuSign Envelope ID: DB05B1F4-AE54-419B-A250-315D312CB137

APLNG is committed to the Australian domestic gas market and looks forward to engaging
with the Government as it considers future domestic gas supply. Should you have queries,
please contact Manda Goodwin, GM Commercial at manda.goodwin@aplng.com.au.

Yours Sincerely

Khoa Dao
Chief Executive Officer
Australia Pacific LNG Pty Limited

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