Review of Wallumbilla Gas Supply Hub and pipeline capacity trading framework
Publication date
Consultation was undertaken during November and December 2021 on options to accelerate development of the Wallumbilla Gas Supply Hub and improve the pipeline capacity trading framework.
This workstream has been incorporated into the gas reform work program agreed by Energy Ministers on 12 August 2022, outlined in the the Summary of Measures document (PDF 693 KB), to support a more secure, resilient and flexible east coast gas market.
An archive of the submissions received during the consultation process remain on this webpage and can be found below. Submissions received informed decisions by Energy Ministers at their 12 August 2022 meeting – these are outlined in the Summary of Measures document that was published following this meeting.
The Wallumbilla hub
The Wallumbilla Gas Supply Hub in southeast Queensland commenced operation in March 2014. It provides a centralised gas trading, settlement and clearing facility through an online portal.
Liquidity at the hub has been improving since it was established, yet it remains low compared to international examples. A more liquid, transparent and efficient market at Wallumbilla will allow participants to respond more flexibly to changes in business needs, with confidence that prices reflect market fundamentals.
The pipeline capacity trading framework
The pipeline capacity trading framework commenced operation in March 2019. It comprises two complementary mechanisms for trading pipeline capacity: the Day-Ahead Auction and the Capacity Trading Platform.
Since commencement, the Day-Ahead-Auction has been very successful in supporting trade in un-nominated contracted capacity on key pipeline routes. The Australian Energy Regulator has estimated the auction saves gas users $30 million to $60 million in annual pipeline transportation charges. It also found the auction supports lower spot prices on wholesale markets as participants take advantage of arbitrage opportunities to move gas where it is most needed. Broader use of the Capacity Trading Platform, however, remains limited.
Consultation process
Stakeholder feedback was sought on:
- key barriers to greater participation in the Wallumbilla Gas Supply Hub, and potential policy options
- key issues to effectiveness of the pipeline capacity trading framework, and potential policy options
- broader issues around related enabling frameworks.
A consultation paper, Options to advance the east coast gas market (PDF 1.39 MB) was available for review and comment.
The consultation period ran from 17 November to 24 December 2021 and submissions received are currently being considered by government. Non-confidential submissions are available below.
Accessible document versions
Accessible versions of the consultation paper (PDF 1.38 MB) and submission template (DOCX 99 KB) are also available.
General stakeholder forum
A general stakeholder forum was held on 30 November 2021 to provide stakeholders with an opportunity to learn from officials about the objectives of the consultation process, and participate in a Q&A session.
Slides presented at the forum are available for download (PDF 2.1 MB).
Timeframes
17 November 2021: Consultation paper published, consultation period commenced
30 November 2021: General stakeholder forum
24 December 2021: Consultation period closed
Read more
Energy National Cabinet Reform Committee announcement on priority gas market workstreams on 11 June 2021
Stakeholder submissions
The following non-confidential stakeholder submissions were received in response to the Options to advance the east coast gas market consultation paper.
Aluminium Council (PDF 838 KB)
The Brattle Group - APPEA submission attachment (PDF 733 KB)
Hunter Gas Pipeline (PDF 79 KB)
PricewaterhouseCoopers - Senex submission attachment (3.37 MB)
