Customs (Prohibited Exports) (Liquefied Natural Gas—Intention to Consider Determination of Domestic Shortfall Quarter) Notification 2026

Overview

The Customs (Prohibited Exports) (Liquefied Natural Gas—Intention to Consider Determination of Domestic Shortfall Quarter) Notification 2026I, enacted in 2026, represents a legislative measure introduced to address potential issues arising from the export of liquefied natural gas (LNG) under certain domestic conditions. This notifiable instrument was issued by Madeleine King, the Minister for Resources, acting under the authority vested in paragraph 13GE(2)(c) of the Customs (Prohibited Exports) Regulations 1958. The primary policy objective of this notification is to signal the government's intention to assess whether the third quarter of 2026 qualifies as a domestic shortfall quarter, thereby potentially restricting the export of LNG to ensure sufficient domestic supply. This notification becomes effective from 1 April 2026, marking the commencement of the government's consideration process for this period.

Scope and Application

The Customs (Prohibited Exports) (Liquefied Natural Gas—Intention to Consider Determination of Domestic Shortfall Quarter) Notification 2026I applies to entities and individuals engaged in the export of liquefied natural gas (LNG) from Australia. Specifically, the notification pertains to any entity or person who intends to export LNG during the specified third quarter of 2026. The notification is issued under the authority of the Customs (Prohibited Exports) Regulations 1958 and is geographically applicable to the entire Commonwealth of Australia. The Minister for Resources, Madeleine King, intends to evaluate whether the conditions for declaring a domestic shortfall quarter exist, which could potentially restrict or alter the export activities of LNG during the notified period. Any decisions made under this notification will be subject to the broader regulatory framework established by the Customs Act 1901 and its associated regulations. This notification comes into effect on 1 April 2026 and will remain in effect until such time as a determination is made or the notification is otherwise rescinded.

Key Provisions

The Customs (Prohibited Exports) (Liquefied Natural Gas—Intention to Consider Determination of Domestic Shortfall Quarter) Notification 2026I, issued under section 13GE(2)(c) of the Customs (Prohibited Exports) Regulations 1958, outlines the intention to assess whether the third quarter of 2026 should be recognised as a domestic shortfall quarter for liquefied natural gas (LNG). This notification, effective from 1 April 2026, is made by Madeleine King, the Minister for Resources. Essentially, the notification serves as a formal declaration of intent to evaluate the need for special measures to manage domestic LNG supply during the specified period. Under the notification, several key provisions come into play. The Minister intends to evaluate various economic, supply, and demand factors to determine if the third quarter of 2026 warrants a designation as a domestic shortfall quarter. This designation would likely trigger specific regulatory actions or exemptions related to the export of LNG. The notification sets the stage for a detailed assessment and subsequent decision-making process. The obligations imposed by this notification are primarily on the Minister for Resources and the relevant government departments. They must gather and analyse data concerning LNG supply and demand, economic indicators, and other relevant factors. The Minister is also required to consider public submissions and stakeholder feedback during this evaluation period. Once the assessment is complete, the Minister must decide whether to formally determine the third quarter of 2026 as a domestic shortfall quarter, thereby initiating the necessary regulatory changes. Breaching the requirements or failing to comply with the obligations set out in the notification could lead to various consequences. Although the notification itself does not explicitly outline specific offences or penalties, non-compliance with related regulations or failure to properly assess and declare a domestic shortfall quarter when warranted could result in legal action. This might include administrative penalties or legal challenges from stakeholders affected by the decision. The consequences of not adhering to the regulatory framework could impact the domestic energy market and international trade relations, underscoring the importance of careful and thorough compliance with the notification’s intent and requirements.