Energy minister Chris Bowen said the finalised gas code released on Monday will secure more gas at reasonable prices for Australian gas users.
But the gas industry immediately warned the federal government to fix forecast gas supply shortfalls to avoid black outs and further bill shock.
The Australian Petroleum Production and Exploration Association said the finalised code puts the government at the centre of the gas market, determining the conditions for new supply through negotiated agreements with gas producers.
"After more than six months of uncertainty as the code was developed, investment in new gas supply is now urgently needed" APPEA chief executive Samantha McCulloch said.
The code, drawn up after industry consultation, establishes a mechanism to drag prices down including a price cap set at $12 per gigajoule to be reviewed after two years.
The code also allows small producers of gas to be exempt from the price cap if they only supply the domestic market.
Coupled with price caps on coal for power generators, federal Labor says energy market intervention has almost halved wholesale energy prices after crippling price spikes added to cost of living pressures.
Producers have offered indicative domestic supply commitments under the new framework of at least 260 petajoules to 2027, which regulators have said reduces the risk of shortfalls.
Due to take effect from Tuesday, the code requires all market participants to be fair in contract negotiations between users and producers.
The code will be enforced by the Australian Competition and Consumer Commission.
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