Document ID: chunk:federal_register_of_legislation:F2023N00066:clause:2_8:p1
Version: federal_register_of_legislation:F2023N00066
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 1/8)
Character Range: 7454–10627

8  Determining a domestic shortfall quarter

Advice to Minister
     (1)      The Department, AEMO and ACCC will provide the Minister information and advice on Australia's forecast domestic gas supply and demand. The Minister may also consider information provided by industry, and any other sources the Minister considers relevant.
     (2)        Forecasts of domestic gas supply and demand will be based on information collected from Australia's gas producers, large gas users and LNG projects. Forecasts may also take into account information relating to factors influencing domestic gas supply and demand, such as seasonal weather forecasts, domestic electricity markets and demand for Australian LNG.

Minister's notification
     (3)        Before the Minister may determine that a quarter will be a domestic shortfall quarter, the Minister must first, by notifiable instrument, notify the Minister's intent to determine whether a forthcoming quarter will be a domestic shortfall quarter.
     (4)        The notice will set out:
          1. in petajoules, the forecast domestic:
                  1. demand;
                  2. supply;
                  3. shortfall;
          2. LNG projects for which the Minister is considering issuing allowable volume permissions;
            Note: An LNG project for which the Minister is considering issuing an allowable volume permission can get an indication of the volume in its initial permission by inputting the values in the notice into the formula in subsections 9(7)-(9).
         c.     LNG projects for which the Minister is considering issuing unlimited volume permissions.
    (5)    Prior to making the Minister's notification, the Minister may work with industry to identify voluntary, industry-led solutions for shortfall avoidance. Any volumes of additional gas supplied to domestic customers through this process would be taken into account in any decisions by the Minister to issue a Minister's notification or Minister's determination.

Consultation with LNG projects
     (6)        The Minister will write to LNG projects to:
      1.   alert them to the Minister's notification;
      2.  invite views on the Australian domestic gas market outlook;
          3. for an LNG project for which the Minister is considering issuing an allowable volume permission — request confirmation of their gas supply for the quarter as at the date of the Minister's notification;
          4. for an LNG project for which the Minister is considering issuing an unlimited volume permission — notify the LNG project it is located in a part of the domestic gas market where Australian consumers are forecast to be unaffected by the shortfall; and
      5.   invite proposals for an industry-led solution to prevent the forecast shortfall.
     (7)        An LNG project should alert any LNG tollee exporters with which it has a gas processing agreement to the Minister's notification.
     (8)        The Minister may consult Australian gas producers, importers, LNG tollee exporters or other gas market participants that are not LNG projects on the matters specified in subsection 8(6).
     (9)        Gas supply is,