To assist you with orientating yourself within the National Gas Rules particularly the current rules, you can access summaries of the content in each chapter below:

Part 1: Preliminary

This Part contains the list of terms used throughout the Rules, accompanied by definitions.

Part 2: Australian Energy Regulator to provide information, and promote informed discussion, on regulatory issues

This Part sets out ways in which the Australian Energy Regulator (AER) may engage with the public on regulatory issues, including by publishing discussion papers and inviting public submissions, comments and discussions.

Part 3: Decision-making under the law

This Part sets out procedures for the AER and Australian Energy Market Operator (AEMO) when making decisions on applications, access arrangement proposals, or other proposals initiated by one of these bodies including:

  • consulting with the public, or other persons with whom consultation is required, on proposals by publishing proposals and inviting written submissions;
  • publishing and consulting on draft decisions or reports;
  • publishing final decisions or reports; and
  • rejecting non-compliant or frivolous proposals.

Part 4: Regulatory determinations and elections

This Part sets out the processes and requirements regarding regulatory determinations and elections as follows:

  • Division 1 sets out the process regarding scheme pipeline determinations.
  • Division 2 sets out requirements for scheme pipeline elections.
  • Division 3 sets out the process of scheme pipeline revocation determinations.
  • Division 4 sets out information regarding Greenfields pipelines incentives.
  • Division 5 sets out the processes regarding classification and reclassification of pipelines.
  • Division 6 sets out requirements regarding the regulatory determinations and elections guide.

Part 5: Ring fencing

This Part sets out the processes and requirements regarding ring fencing:

  • Division 1 provides that any proposal by the AER to impose an additional ring fencing requirement under section 143 of the National Gas Law (NGL) must be dealt with in accordance with the expedited consultive procedure.
  • Division 2 provides for the approval process regarding associate contracts.
  • Division 3 provides for exemptions from minimum ring fencing requirements under the NGL, including exemption applications, exemption conditions and revocation of exemptions.
  • Division 4 sets out exemptions for certain pipelines.
  • Division 5 outlines the AER’s requirements regarding the ring fencing decision guide and register.
  • Division 6 provides for variations of decisions for material errors or deficiencies.

Part 6: Pipeline interconnection principles

This Part sets out pipeline interconnection principles, including:

  • the right to interconnect;
  • interconnection processes and costs; and
  • interconnection policy requirements.

Part 7: Prohibition against increasing charges to subsidise particular development

This Part sets out the process for service providers applying to the AER for an exemption for complying with section 136A(3) of the NGL, including requirements for the AER to use the expedited consultative procedure when deciding on an application for an exemption.

Part 8: Access Arrangements for scheme pipelines

This Part deals with the requirements for scheme pipelines preparing and submitting an access arrangement proposal, and the AER approval process, including:

  • access arrangement information;
  • submission of new access arrangement proposals, access arrangement revision proposals, and reference service proposals to the AER for approval;
  • the AER’s decision-making process for approving access arrangement proposals and reference service proposals, including making and approving its own proposals for new or revised access arrangements;
  • varying or revoking existing access arrangements; and
  • other provisions relating to consistency, queuing requirements, extension and expansion requirements, capacity trading requirements and change of receipt delivery point.

Part 9: Price and revenue regulation for scheme pipelines

This Part sets out detailed requirements for the AER to apply in determining the total revenue for a scheme pipeline service provider in the context of an access arrangement. It covers the “building block approach” with a breakdown and explanation of how each element of the building block approach is to be applied and satisfied. This includes provisions relating to capital expenditure and operating expenditure, depreciation and tariffs.

Part 10: Prescribed transparency information

This Part relates to the general duties for the provision of pipeline services in line with requirements under section 136C of the NGL. It sets out detailed information publishing requirements including:

  • obligations on service providers including the access information standard and obligation to publish information;
  • exemptions from information disclosure requirements;
  • pipeline information disclosure guidelines and pricing templates; and
  • disclosure obligations for unutilised contracted capacity.

Part 11: Access negotiation framework

This Part sets out general requirements concerning the facilitation of access to a relevant pipeline service, including requirements for service providers and users or prospective users regarding:

  • compliance with the access information standard
  • developing and maintaining a user access guide
  • access requests and offers
  • negotiations and access negotiation information
  • existence of access dispute.

Part 12: Access disputes

This Part sets out the process for determining pipeline access disputes, including:

  • the requirements and process for providing a notice of access dispute;
  • the ability to withdraw an access dispute notice;
  • the process for joining additional parties to an access dispute;
  • the mediation process and requirements for access disputes involving small shippers;
  • the arbitration process and requirements for non-scheme pipeline access disputes;
  • access determinations including the matters which may be included in a determination, circumstances and content requirements for interim access determinations, and final access determinations;
  • matters to be taken into account when determining disputes for scheme pipelines and non-scheme pipelines
  • access dispute hearing procedures; and
  • specific safety information, including safety of operation notifications and the engagement of independent experts for the provision of expert safety reports.

It also contains provisions relating to:

  • termination of the dispute resolution process;
  • costs of arbitration for non-scheme pipeline disputes; and
  • legal professional privilege.

Part 12A: Gas connection for retail customers

This Part regulates the provision of gas connection services between distributors and retail customers, and deals with:

  • types of connection services, being basic connection services, standard connection services, and negotiated connection contracts
  • connection charges
  • applications for connection services
  • formation of connection contracts for basic and standard connection services
  • the process and framework for negotiated connection contracts, and
  • dispute resolution between distributors and retail customers.

Part 13: [Deleted]

Part 14: [Deleted]

Part 15: Pipeline register

This Part sets out the requirements for:

  • the Australian Energy Market Commission (AEMC) to establish and maintain a register of all pipelines that are, or have been, subject to any form of regulation or exemption from regulation under the Law, old access law and Gas Code, and to publish this register on its website, and
  • service providers to notify the AEMC, in the form and manner specified by the AEMC, of a new pipeline or extension or capacity expansion of an existing pipeline, for inclusion in the register.

Part 15A: Registered participants

This Part sets out:

  • the requirements for registering as a participant in the declared wholesale gas market of an adoptive jurisdiction, the retail market, and the short term trading market;
  • AEMO’s responsibilities in relation to registration, including considering applications for registrations, granting exemptions from registration, revoking registrations or exemptions, and keeping a register of participants and persons exempted from registration, and
  • provisions enabling AEMO to recover its costs from participants.

Part 15B: Procedures

This Part sets out the matters that can be dealt with in the Retail Market Procedures, Wholesale Market Procedures and the procedures for regulating the Gas Bulletin Board, Short Term Trading Market, Capacity Transfer and Auctions, Gas Statement of Opportunities, East Coast Gas System and describes the processes to be followed by AEMO when making these Procedures.

Part 15C: Dispute resolution and compensation claims

This Part sets out the process for resolving disputes relating to:

  • the application or interpretation of the NGR or National Gas Procedures
  • liability or alleged liability under the NGR or National Gas Procedures
  • a matter that is, by agreement between the parties to the dispute, to be resolved under this Part, or
  • a matter that is under some other provision of the NGR or National Gas Procedures to be determined under this Part.

This Part sets out the process for an expert determination of compensation claims, including:

  • administration and guidance by AEMO;
  • the process for nominating and appointing an independent expert to determine a compensation claim;
  • information AEMO must provide to the independent expert regarding the compensation claim;
  • procedures for assessment; and
  • independent expert draft and final report determinations.

This Part does not deal with access disputes, budget disputes, or a dispute that is classified as an excluded dispute under any provision of the NGR.

Part 15D: Gas statement of opportunities

This Part sets out requirements for the gas statement of opportunities (GSOO) published by AEMO, including contents of the statement, annual revisions and republication, publication of supplements where significant new information arises that is relevant to the statement and the GSOO survey process.

Part 15E: Trial waivers, trial Rules and trial projects

This Part sets out:

  • the granting of trial waivers by the AER to enable trial projects, including consultation and eligibility requirements;
  • the information required in a request to the AEMC for the making of a trial Rule;
  • oversight and monitoring by the AER of trial projects carried out under trial waivers or trial Rules; and
  • requirements for the Trial Projects Guidelines to provide processes for the early termination and opting out of trial project arrangements.

Part 16: Information protection and use

This Part sets out obligations relating to the protection of confidential information against improper use or disclosure, the development and implementation of appropriate policies, in consultation with the AEMC and, the use of information for the Integrated System Plan by AEMO.

Part 17: Miscellaneous provisions relating to the AER

This Part sets out procedural requirements for the AER:

  • undertaking a review of Chapter 4 of the NGL;
  • making or amending wholesale market monitoring guidelines;
  • making a market monitoring information order or an urgent market monitoring information order;
  • making a general regulatory information order and price information order;
  • consultation requirements regarding the Compliance Procedures and Guidelines;
  • preparing service provider performance reports;
  • publishing gas price assumptions for reserves and resources estimates; and
  • requirements publishing price information, including items such as gas supply and swap agreements and LNG import and export prices.

Part 18: Gas Bulletin Board

This Part provides requirements for reporting of information to facilitate trade and informed decision making in relation to the:

  • the provision and use of covered gas and covered gas services; and
  • negotiation for access to Bulletin Board pipelines and other BB facilities providing third party access.

This Part requires gas facility operators or facility operator groups, field owners or field owner groups, facility developers or facility developer groups, BB allocation agents, to register with AEMO and to report information (including via an agent) relating to gas supply, pipeline flows, storage, demand, capacity, allocation arrangements, auction related information, reserves and resources, LNG export and shipment data and gas transaction information, to ensure the provision of accurate and timely information to the market.

Obligations apply to gas facility operators in all NEM states and territories, including specified Northern Territory facilities. Civil penalties apply for non-compliance with provisions relating to Bulletin Board registrations and the quality of information submitted to the Bulletin Board.

Part 18A: Non-pipeline infrastructure terms and prices

This Part sets out requirements for information standards and obligations for service providers of Part 18A facilities to publish information as well as the process for the AER to grant, vary or revoke an exemption, including requirements to publish price reporting guidelines. A Part 18A facility includes a designated compression service facility, stand-alone compression service facility, gas storage facility or blend processing facility.

This Part does not currently apply to a facility located in Western Australia.

Part 19: Declared Wholesale Gas Market Rules

This Part sets out the rules that govern the operation of the declared transmission system, the declared distribution systems and the operation and administration of the Declared Wholesale Gas Market, including:

  • distribution connected facilities participation
  • AEMO’s specific powers and responsibilities regarding market operation and administration, including for:
    • system security;
    • gas scheduling;
    • determining market prices;
    • administration of participant compensation fund
    • allocation and reconciliation of gas injections and withdrawals
    • facilitating the billing and settlement of transactions between market participants (settlements)
    • prudential requirements
  • various technical matters including items such as:
    • the process for connections to the declared transmission system, including obligations of AEMO and Connected Parties, AEMO’s approval process and details regarding connection agreements;
    • LNG storage and reserves, which mandates that an LNG Storage Provider must maintain a register of LNG storage capacity and keep AEMO informed in a timely manner of all matters relating to the operation of its LNG storage facility
    • gas quality specifications and gas quality monitoring
    • metering installations
    • matters relating to the declared distribution systems including unaccounted for gas, the operational coordination between AEMO and Distributors, the requirements for the declared distribution system constraint methodology and the process for ad hoc constraints applied to distribution connected facilities;
  • market information and system planning including:
    • provision of market information by AEMO;
    • AEMO’s forecast and planning maintenance reviews, including Participant disclosure obligations in relation to the forecast reviews;
    • requirements and processes in relation to capacity certificates
  • intervention and market suspension processes and procedures including
    • circumstances that constitute an emergency and AEMO’s response;
    • emergency planning by Participants;
    • emergency curtailment of Customers;
    • notice of threat to system security and market responses and intervention
    • conditions and effect of market suspension
  • dispute resolution remedies
  • the AER’s enforcement and monitoring obligations regarding trading activity in the Market, including significant price variations.

Part 20: Short Term Trading Market Rules

This Part deals with the operation and administration of the short term trading market (STTM) by AEMO, and sets out:

  • AEMO’s functions relating to:
    • providing a market operator service
    • market operations, including scheduling and pricing
    • gas allocations, including managing ownership, risk and responsibility for gas
    • the ex ante market schedule
    • setting the ex post imbalance price
    • facilitating the making of contingency offers for gas
    • calling and scheduling contingency gas
    • scheduling errors, establishing and maintaining a participant compensation fund for each hub
    • dispute resolution process
    • facilitating billing and settlement
    • prudential requirements,
    • default and suspension
    • conducting market reviews, including AEMO’s review of market parameters; and
    • market audit by an independent auditor of the STTM annually and the AER’s role monitoring the STTM hubs and STTM distribution systems for Adelaide, Sydney and Brisbane
  • requirements for registration and revocation of registration or exemption of trading participants
  • requirements (on STTM Facilities and STTM Distribution Systems) to provide and register information with AEMO
  • aggregation criteria for injection facilities and net metered facilities
  • registration of services and trading rights, including:
    • facility services and distribution services;
    • trading rights;
    • allocation agents;
    • changes to registered services and trading rights;
  • dispute resolution under or relating to Part 20; and
  • matched allocation agreements.

Part 21: Retail support obligations between distributors and retailers

This Part provides for retail support obligations in respect of distributors and retailers who have shared customers, including billing and payment rules for distributors’ service charges to retailers, and a credit support regime in respect of retailers’ liability for outstanding charges. The provisions in this Part prevail over any inconsistent provisions in a distributor’s access arrangement or gas service agreement.

Part 22: Gas Trading Exchange

This Part provides for the capacity trading platform.

This Part sets out the rules relating to the gas trading exchange, including:

  • high level design parameters for the exchange;
  • AEMO’s ability to charge fees for establishing, operating and administering the exchange;
  • arrangements for the determination of charges for delivery failures;
  • arrangements for becoming a member and AEMO’s power to suspend a member;
  • requirements for an exchange agreement;
  • market conduct rules; and
  • the prohibition on short selling.

This Part also places a specific duty on the AER to monitor compliance with the market conduct rules.

Part 23: [Deleted]

Part 24: Facilitating capacity trades and the capacity auction

This Part  provides for a number of measures to facilitate capacity trading and the day-ahead auction, including the Operational Transportation Service Code, standard operational transportation service agreements, transaction support arrangements and transportation service provider obligations.  It also sets out the exemption and registration framework for facility operators.  In this Part:

  • Division 1 deals with preliminary matters.
  • Division 2 provides for the Operational Transportation Service Code.
  • Division 3 provides for exemptions and for the registration of transportation facilities and transportation service providers as facility operators.
  • Division 4 provides for matters to be included in the Capacity Transfer and Auction Procedures to facilitate capacity trades and the capacity auction and for the allocation of service points to zones.
  • Division 5 sets out obligations of transportation service providers relating to standard operational transportation service agreements.
  • Division 6 sets out other obligations of transportation service providers in relation to facility agreements to facilitate capacity trades.

Part 25: Capacity Auction

This Part provides for the conduct and operation of the day-ahead auction and includes rules for auction design, priority principles, market conduct, auction participant and service provider obligations, and payments. In this Part:

  • Division 1 deals with preliminary matters, including definitions, pipeline and service classifications and information standards.
  • Division 2 provides for the establishment and operation of the capacity auction and participation in the capacity auction.
  • Division 3 sets out the market conduct and nomination rules and obligations in relation to nominations and renominations.
  • Division 4 provides for settlement of amounts payable to facility operators in connection with the capacity auction.

Part 26: Standard market timetable

This Part:

  • specifies the standard gas day start time to be employed by production, storage blend processing, and transportation facilities and requires the operators of these facilities to use the standard gas day for nomination, scheduling and the provision of services provided by means of a covered gas facility.
  • specifies the standard nomination cut-off time to be employed by operators of Part 24 facilities and auction facility operators specifies the auction service nomination cut-off time to be employed by auction facility operators.
  • requires facility operators to ensure that the measurement and recording of quantities of gas correspond to the standard gas day (or shorter period) in certain circumstances. 

Part 27: East coast gas system reliability and supply adequacy

This Part provides information regarding AEMO’s East Coast Gas System Reliability and Supply Adequacy functions under the NGL. It outlines the obligations of entities including retailers and AEMO. In this Part:

  • Division 1 provides for preliminary matters including interpretation, times and dates, and exercise of functions.
  • Division 2 sets out disclosure obligations for certain entities to provide information to AEMO, including forecasts as relevant, in accordance with the Division and/or AEMO’s Procedures.
  • Division 3 provides for gas supply adequacy and reliability conferences, including attendance requirements for relevant entities.
  • Division 4 deals with the exercise of east coast gas system reliability and supply adequacy functions including the publication of risk or threat notices, variation or revocation of risk or threat notices, the publication of direction or trading notices, post intervention reports, and matters AEMO must consider in determining whether to exercise directions or trading functions.
  • Division 5 covers East Coast Gas Systems directions, kinds of directions AEMO may or may not give, and notice of noncompliance with directions.
  • Division 6 sets out the process regarding compensation claims relating to east coast gas system directions.
  • Division 7 outlines AEMO’s exercise of trading functions and the requirements for establishing and funding the trading fund.
  • Division 8 contains various provisions relating to maintaining contact registers and information requirements as well as AEMO reporting to the MCE on certain functions.