2025 Gas Market Review Submission
On 30 June 2025 the Commonwealth Government of Australia announced that the Department of Industry, Science and Resources and the Department of Climate Change, Energy, the Environment and Water would jointly conduct a Gas Market Review to examine the key instruments for securing domestic gas supply.
Gulf Energy Pty Limited (Gulf Energy) is pleased to advise that it has lodged a submission to the Australian Government entitled National Gas Sovereignty Framework – A Strategic Policy Response to Australia's Energy Security Crisis.
Gulf Energy’s submission proposes a legislative, regulatory, and fiscal framework to secure Australia’s domestic gas supply, stabilise prices, and preserve export reliability, while establishing a sovereign wealth mechanism for intergenerational benefit. The key measures include:
Enactment of a National Gas Sovereignty Act with a 10-year mandate and Commonwealth supremacy where national security is at stake.
Dynamic domestic reservation of a minimum 15% for new projects (post-2027 FID), rising to 25% in periods of shortfall, with existing export contracts grandfathered.
Domestic pricing safeguards to ensure fair-value benchmarks and break the direct LNG netback link for domestic users.
Development of strategic storage equivalent to three months’ national demand, with ring-fenced reserves for Defence and critical infrastructure.
Introduction of a Frontier Exploration Incentive Scheme providing a 150% tax deduction for qualifying junior exploration with domestic supply commitments.
Creation of a Sovereign Energy Transition Fund allocating 5–15% of gas royalties/taxes for intergenerational benefit, modelled on Norway’s Government Pension Fund Global.
The recommendations are based on analysis of projected east coast supply shortfalls from 2025 onwards, the scale of the $7–9 trillion Net Zero transition investment requirement, and international precedents demonstrating the consequences of inadequate domestic gas security.
To read Gulf Energy’s submission please Click Here
Background to the Gas Market Review
In announcing the Gas Market Review, the Australian Government said:
“The review will examine the:
Australian Domestic Gas Security Mechanism (AGDSM)
Gas Market Code (the Code)
Heads of Agreement (HoA) with east coast liquified natural gas (LNG) exporters.
It will look at whether we can improve and streamline these instruments to ensure sufficient affordable gas supply in the longer term. This will help deliver on the Future Gas Strategy, which spells out the role gas will play alongside renewables, batteries and pumped hydro in securing Australia’s energy future.
A combined review ensures that we consider gas market regulation effectively and efficiently. This will help improve outcomes for market participants and minimise regulatory burden.
We’ll consider:
the effectiveness of current policies and regulations
whether the regulatory interventions remain suitable
opportunities for streamlining and consolidating the regulatory approach
alternative approaches to addressing current challenges.
We are seeking feedback from industry, stakeholders and anyone with an interest in the gas market.
We will provide a review report to the Minister for Climate Change and Energy and the Minister for Resources. The government will consider recommendations from the review and next steps. The current regulations will remain in place until we finalise the review and make changes. We’ll likely consult further on the details of any significant changes.”
Further details about the Gas Market Review can be found here.