Document ID: chunk:federal_register_of_legislation:F2023N00066:clause:2_8:p4
Version: federal_register_of_legislation:F2023N00066
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 4/8)
Character Range: 15920–18876

and Western gas markets will not be affected by a shortfall.
     (19)     Where the Minister determines a quarter as a domestic shortfall quarter, all LNG projects will receive one of two types of permissions. The types of permission distinguish between LNG projects:
          1. in a shortfall market; and
          2. not in a shortfall market.

9 Permission types
    (1)     In a domestic shortfall quarter, the export of LNG from Australia is prohibited unless the LNG project or tollee exporter:
         c.       has a permission; and
         d.       the permission is produced to the Collector.
     (2)         Permissions will be issued for a domestic shortfall quarter and will expire at the end of the domestic shortfall quarter.
     (3)        The Minister may grant permissions for an unlimited volume or for an allowable volume.

Unlimited volume (UV) permissions
     (4)    A UV permission allows an LNG project to export an unlimited volume of LNG in a domestic shortfall quarter. Other limitations, apart from the ADGSM, may influence the volume of gas an LNG project can export, including as a result of state-based agreements or licencing conditions.
     (5)        The Minister may grant a UV permission to an LNG project that is in a part of the Australian domestic gas market where Australian consumers are unaffected by the shortfall.
            Example: The Minister may issue UV permissions to LNG projects in the Western and Northern gas markets during a domestic shortfall quarter where consumers in the Eastern gas market would be impacted by the shortfall.
     (6)        If an LNG tollee exporter intends to export LNG from an LNG project issued a UV permission, the Minister may grant a UV permission to the LNG tollee exporter.

Allowable volume (AV) permissions
     (7)         An AV permission will be granted to an LNG project not granted a UV permission.
     (8)        AV permissions will be expressed in tonnes of LNG, converted from petajoules using the formula 1 petajoule = 18,382 tonnes.
     (9)        The allowable volume in an AV permission will be:
          1. the LNG project's gas supply for the domestic shortfall quarter;
            Note: Gas supply is defined in subsection 8(9) of these Guidelines.
         b.       minus the LNG project's shortfall alleviation contribution.
      (10)       The shortfall alleviation contribution is:
          1. the shortfall volume specified in the Minister's determination;
          2. divided by the number of LNG projects to be granted AV permissions.

Trade of AV permissions
     (11)    An LNG project granted an AV permission may buy or sell a volume in its AV permission with another LNG project granted an AV permission. For the avoidance of doubt:
          1. any person not issued an AV permission in accordance with the Guidelines may not trade an AV permission; and
          2. a volume in, or associated with, a UV permission may not