Australian government plans east coast gas market reset
The Australian government pledged to create a more competitive and transparent Australian gas hub by unlocking gas supply, delivering an efficient pipeline and transportation market, and empowering gas customers. The news comes on the heels of reported measures to ensure Australia’s fuel security (OGJ Online, Sept. 14, 2020).
Prime Minister Scott Morrison outlined a number of measures to get more gas into the market.
These include:
- Setting new gas supply targets with states and territories and enforcing ‘use-it-or-lose-it’ requirements for gas licenses,
- Unlocking five gas basins beginning with Beetaloo in the NT and North Bowen and Galilee basins in Qld,
- Making new arrangements with the three east coast LNG exporters (on Curtis Island, Qld) to avoid domestic gas market supply shortfall and exploring options for a prospective gas reservation scheme to ensure gas users obtain energy at a reasonable price.
Morrison noted ways to boost the gas transport network include:
- Identifying priority pipelines and critical infrastructure as part of a $10.9 million (Aus.) national gas infrastructure plan that also will highlight where government will step in if the private sector does not invest,
- Reforming pipeline infrastructure regulations to promote competition and transparency, and
- Improving pipeline access and competition by starting work on a dynamic secondary pipeline capacity market.
The government also plans to establish an Australian gas hub at Wallumbilla in Queensland—the country’s most strategically located and connected gas trading hub—to deliver an open, transparent, and liquid gas trading system. To level the playing field for gas producers and consumers, a voluntary industry-led code of conduct is expected to be delivered by February 2021.