Market Review: Open
The AEMC has initiated a review into the application of gas pipeline capacity trading reforms in the Northern Territory. The Commission’s report is due to be published in March 2018.
East coast gas markets are currently being redesigned to support faster and more efficient gas trading and access to pipeline transportation along the east coast of Australia. The changes are based on a package of reforms developed by the AEMC and endorsed by the COAG Energy Council. Implementation of the reform program is being overseen by the COAG Energy Council’s Gas Market Reform Group.
Meanwhile, the new pipeline linking Tennant Creek in the Northern Territory with Mount Isa in Queensland is presently under construction with first gas scheduled to flow in late 2018.
As the new pipeline effectively connects the Northern Territory with the east coast gas market for the first time, the COAG Energy Council has tasked the AEMC with considering whether the capacity trading reform package should also be implemented, in whole or in part, in the Northern Territory.
The capacity trading reform package consists of:
- a day-ahead auction of contracted but un-nominated pipeline capacity
- a capacity trading platform to facilitate sales by capacity holders ahead of the auction and provide for exchange based trading
- standardised provisions in capacity agreements to make capacity more fungible and allow shippers greater receipt and delivery point flexibility
- a reporting framework for secondary trades of pipeline capacity and hub services.
Stakeholders are welcome to contact the review team if they would like to discuss any aspect of the project.
AEMC Senior Adviser, Russell Pendlebury (02) 8296 0620 or Russell.firstname.lastname@example.orgView less