Document ID: chunk:federal_register_of_legislation:F2023N00066:clause:2_8:p2
Version: federal_register_of_legislation:F2023N00066
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 2/8)
Character Range: 10337–13467

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, at the time the Minister made the Minister's notification, the LNG project's:
          1. gas production volume;
          2. plus volumes purchased from participants in the domestic market (domestic gas purchased volume);
          3. plus its tolled gas volume;
          4. minus volumes contracted to be sold to domestic customers or Australian LNG projects (domestic gas sales volume).
     (10)    The Minister may request information on how the LNG project calculated gas supply, including the LNG project's:
          1. gas production volume; and
          2. tolled gas volume; and
          3. domestic gas purchased volume; and
          4. domestic gas sales volume.

Determining a domestic shortfall quarter
     (11)     The Minister will exercise fair and reasonable discretion and judgement in considering all relevant and available information to deciding whether to make a Minister's determination.
     (12)    For the Minister to make a Minister's determination, the Minister must have reasonable grounds for their belief that:
          1. there will not be a sufficient supply of natural gas for Australian consumers unless exports of LNG are controlled.
     (13)    When considering whether there are reasonable grounds to believe that there will not be a sufficient supply of natural gas for Australian consumers unless exports are controlled, and that exports of LNG would contribute to that lack of supply, the Minister may take into account a range of factors. These may include, but are not limited to, the following.
          1. The extent to which limiting LNG exports could be expected to reduce a shortfall.
          2. External factors influencing the gas market.
            Example: This may include natural disasters, infrastructure malfunctions or closures, or a sudden rise in demand.
         c.       The materiality of a shortfall. The Minister may choose not to determine a domestic shortfall quarter, even where the Minister determines there will be a shortfall, if the Minister considers the likely shortfall volume to be small compared to forecast demand.
         d.       The social and economic costs of imposing export controls. The Minister may choose not to determine a domestic shortfall quarter, even where the Minister determines there will be a shortfall, if the Minister considers the social and economic costs of imposing export controls are likely to be greater than the benefit to Australian consumers affected by a shortfall.
         e.       Limitations in the ability for LNG projects to redirect gas to the domestic market. The Minister may consider the practical impact of export controls in the event of a Minister's determination.
            Example: The Minister may consider whether market impediments (such as transport and storage infrastructure constraints) are