The AEMC today published a consultation paper on a rule change request from the Northern Territory Government to exempt LNG facilities from providing information to the Natural Gas Bulletin Board.
The proposed exemption would apply to facilities that are:
- principally operated as part of an LNG producing operation; and
- connected to the Northern Territory gas market solely through a pipeline facility at the location of the LNG producing operation.
The Northern Territory LNG projects operate differently to their east coast counterparts. The LNG projects engage in only very limited trade with the domestic market, as all gas for LNG is sourced from offshore fields and most of the gas produced is dedicated to LNG production. However, in the event that emergency or back-up gas supply is required, gas can be made available to the NT’s Power and Water Corporation via a smaller pipeline connecting to the domestic market.
With the completion of the Northern Gas Pipeline connecting the Territory to the wider east coast market in January 2019, the Territory’s LNG facilities are now required to be registered and provide information to the Bulletin Board by 6 May 2019.
The Territory Government considers that requiring the LNG projects to publish information on the Bulletin Board would create administrative costs and also commercial disadvantages for the LNG projects from revealing operational data. Therefore, the rule change is needed to preserve the commercial incentives for Territory LNG producers to maintain their connections to the NT gas market and continue with their emergency back-up gas supply arrangements.
The AEMC’s consultation paper highlights a number of issues, including the costs and benefits of applying the information provision requirements to the NT LNG projects.
Submissions on the consultation paper are due by 14 March 2019.
Media: Bronwyn Rosser, Communications Specialist, 0423 280 341 or (02) 8296 7847.
In October 2018 a new rule started to enhance the breadth and accuracy of information provided to the market and the public through the Natural Gas Bulletin Board. The Bulletin Board, managed by the Australian Energy Market Operator, provides up-to-date gas system and market information to help participants make more informed decisions about trading, investing in, or using gas.
The new rule increases the amount and frequency of data reported on the Bulletin Board, along with greater data accuracy requirements and a stronger compliance framework. The changes are part of the AEMC’s package of gas market reforms, endorsed by the COAG Energy Council, which are designed to support faster and more efficient gas trading and access to pipeline transportation along the east coast of Australia.