The Turnbull government is moving a step closer to slapping export restrictions on liquefied natural gas producers as part of its bid to secure domestic supply and bring down prices.

Resources Minister Matt Canavan will give formal notice to LNG producers on Monday that he will use the Australian Domestic Gas Security Mechanism to assess whether 2018 will be a gas "shortfall year".

The LNG plant at Gladstone in Queensland. Credit:Bloomberg

Introduced on July 1 as part of the Coalition's energy security push, the mechanism allows the government to intervene in the LNG market to ensure there is sufficient gas supply to meet the needs of Australian consumers. It can do so by requiring those LNG projects which are drawing gas from the domestic market to limit exports or find offsetting sources of new gas.