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ACCC report highlights importance of continued pipeline investment

The Australian Competition and Consumer Commission’s December Interim Report of the 2017-2020 Gas Inquiry highlights the need for increased pipeline investment to enable meaningful new volumes of gas to flow from Queensland to southern markets.

“The ACCC’s commentary on gas transportation focuses on contractual congestion, gas swaps and short-term services.” Australian Pipelines and Gas Association Chief Executive Officer Steve Davies said.

“Addressing these issues will help improve liquidity and competition in the market and APGA supports the reforms underway to do so, “ Mr Davies said.

Capacity trading, gas swaps and short-term services can all help increase liquidity and competition, but can do little to increase the amount of gas delivered on peak days. It is the peak demand delivery capacity of a gas transmission pipeline that determines how much gas demand can be supported by a pipeline and is of most relevance to the markets it serves.

“All stakeholders want meaningful new volumes of gas to enter the market. That means producers and users will need to work with pipeline operators to reach commercial agreements to expand existing pipelines or build new pipelines, depending on where the gas is coming from.”

Read more in the media release: ACCC reports highlights importance of continued pipeline investment

 

Last updated on 13 Dec 2017 by