‘Gas trigger’ – What is it and what does it mean for Australians?

As fuel prices rise, it’s the phrase of the month, but is the government’s use of the fabled ‘gas trigger’ the key to keeping prices in check?

Unfortunately not, because, despite seeming like an immediate cry to action, it’s actually a slow-moving reaction to an imminent catastrophe, and will likely arrive too late to help hard-pressed customers whose fuel bills will double in price next month.
The Australian Domestic Gas Security Mechanism is the official term for the gas trigger, and it’s almost as long as the process itself.

Pulling the trigger now will, at best, delay the discharge of more gas into the network until January 1, 2023.

‘The ADGSM is useless for dealing with this situation,’ Australian Institute gas expert Mike Ogge admitted.

In actuality, it means that a long series of meetings between government officials and the gas business will be held to establish the market’s path.

Both parties must be convinced that there will be a gas shortage for consumers across the country for the entire calendar year.

More gas would be let into the system under the mechanism only after a series of bureaucratic hoops and jumps – and the valves wouldn’t open until 2023.

The system was implemented by the Coalition government in 2017 with the goal of protecting Australia’s supplies.

The immediate crisis caused by Russia’s invasion of Ukraine, compounded with other variables, has shown the trigger’s flaws.

Mr. Ogge, on the other hand, believes that the process is ineffective and that it may be derailed by symbolic gestures from gas providers.

He stated, ‘It is incapable of dealing with this issue.’ ‘It needs to be modified,’ says the author.

David Littleproud, the Nationals’ leader, also agreed that the trigger would not assist in the short term.

‘I don’t think it’s going to have any impact if it can’t come into effect until January 1 – that’s a long way off,’ he said.

‘That’s a long winter for many people in eastern Australia who will shiver.’

He criticized the newly-elected Labor government for not ‘raising the phone’ to gas providers to get more supply in the meanwhile, a claim rejected by Madeleine King, the newly-appointed minister of resources.

The fuel sector, on the other hand, claims that gas is currently saving the country and that it should not be blamed for the price hikes.

‘Gas price rises are not being driven by gas exports or shortfalls,’ Australian Petroleum Production and Exploration Association acting chief executive Damian Dwyer said.

‘Coal prices have skyrocketed and there have been outages at a number of coal-fired power stations – increasing electricity prices and increasing demand for gas to fuel gas-fired power generators that were suddenly called into operation.

‘Gas is keeping the lights on through international shocks, lower renewables power generation and higher coal prices.

‘Domestic supply is secure and at near record levels. There is enough gas for domestic customers.’

But Mr Ogge insisted: ‘That is just completely untrue. No-one but the gas industry would claim the gas exports are not putting the price up.