Initiation of AEMC review into the potential application of gas trading reforms in the Northern Territory
The AEMC today published Terms of Reference for a review into whether gas pipeline capacity trading reforms, developed for the east coast gas market, should apply in the Northern Territory.
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 in 2016 and endorsed by the COAG Energy Council.
Meanwhile, construction is underway on a new pipeline to link Tennant Creek in the Northern Territory with Mount Isa in Queensland, with the first gas scheduled to flow in late 2018.
As this new pipeline will connect the Territory to the east coast gas market for the first time, the COAG Energy Council has tasked the AEMC with considering whether the pipeline capacity trading reform package should also be implemented, in whole or in part, in the Northern Territory.
The pipeline capacity trading reform package consists of:
a day-ahead auction of contracted but un-nominated pipeline capacity
a capacity trading platform to support exchange-based trading
standardised provisions in capacity agreements to provide greater flexibility and tradability
a reporting framework for secondary trades of pipeline capacity and hub services.
The project team will consult with key stakeholders, including the Northern Territory government and industry, for the review. Stakeholders are also welcome to contact the review team if they would like to discuss any aspect of the project:
AEMC Director, Shari Boyd (02) 8296 7869 or shari.boyd@aemc.gov.au
AEMC Senior Adviser, Russell Pendlebury (02) 8296 0620 or russell.pendlebury@aemc.gov.au
The Commission's report is due to be published in March 2018.
Media: Prudence Anderson, Communications Director, 0404 821 935 or (02) 8296 7817.
View all related project documents
Review of the application of capacity trading reforms in the Northern Territory - GPR0006
Extension for operational security mechanism final determination