Document ID: chunk:federal_register_of_legislation:F2023N00066:clause:2_8:p7
Version: federal_register_of_legislation:F2023N00066
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 7/8)
Character Range: 23986–26956

long-term contract gas, disaggregated by any future specified delivery timing.
    (7)    In recognition that a protected long-term contract may have a seasonal profile (where the timing of the delivery is specified in the protected long-term contract), Schedule 2 of these Guidelines will disaggregate long-term contract gas by month. Where the agreement does not specify delivery timing by month, equal volumetric delivery in each month will be assumed. Where the agreement specifies the buyer's right to determine delivery timing, the Minister will consider any delivery timing requests from the buyer.
Example: A protected long-term contract requires the seller to deliver 30 thousand tonnes of LNG in Q4 of every year, beginning on 1 January 2012 and ending on 1 January 2025.
In Q1 2024, the seller writes to the Minister requesting confirmation of the long-term contract gas in the protected long-term contract. The Minister updates Schedule 2 of these Guidelines to specify: a) the seller (Northern LNG); b) the buyer (Asia Gas Inc.); c) the date the protected long-term contract was executed (1 November 2011); d) for October 2024 – long-term contract gas is 10 thousand tonnes of LNG; for November 2024 – long-term contract gas is 10 thousand tonnes of LNG; for December 2024 – long-term contract gas is 10 thousand tonnes of LNG.
    (8)    Long-term contract gas for a domestic shortfall quarter will be the sum of the monthly long-term contract gas volumes for the domestic shortfall quarter.

Relevant criteria for increasing the allowable volume in the AV permission
    (9)    When considering an application to increase the allowable volume in an AV permission, the Minister will consider the following criteria.
          1. Whether the LNG project has exhausted all available commercial solutions to fulfil its contractual obligations, including but not limited to its protected long-term contracts. Commercial solutions include increasing the allowable volume in an AV permission through trade and purchasing LNG on the global market to meet a contractual obligation.
Note: Subsections 9(11) to 9(13) of these Guidelines relate to the trade of AV permissions.
         b.       The economic and social impacts of a shortfall in Australia equivalent to the increase in the allowable volume under consideration.
         c.       The likely impact on Australia's reputation as a reliable trade and investment partner.
         d.       Whether the LNG project has increased production to ease the shortfall.
            Example:  In response to a Minister's determination, an LNG project increases production and enters contracts with domestic customers to ease the shortfall. The allowable volume in the project's AV permission is less than its long-term contract gas, so the LNG project requests the Minister increase the allowable volume in the AV permission. Given the LNG project increased production and supplied it to the domestic market to ease