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Review of Wallumbilla Gas Supply Hub and pipeline capacity trading framework

Publication date

Stakeholder feedback is sought on options to accelerate development of the Wallumbilla Gas Supply Hub and improve the pipeline capacity trading framework.

Consultation is being undertaken to inform development of a roadmap for Energy Ministers’ consideration in early 2022. The roadmap will identify a preferred suite of policy reforms and set out a plan for their further development, consultation and potential implementation.

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 2 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 is 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.

The consultation paper, Options to advance the east coast gas market (PDF 1.39 MB) is now available for review and comment.

Responses to questions posed in the paper can be submitted using the submission template (DOCX 109 KB) by 12pm AEDT on Friday 24 December 2021 to gas@industry.gov.au.

Submissions that are not marked confidential will be published on the Energy Ministers website following the close of the consultation period.

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

15 November 2021: Consultation paper published

30 November 2021: General stakeholder forum

24 December 2021: Responses to consultation paper due

March 2022: Energy Ministers to consider roadmap

Read more

Wallumbilla Gas Supply Hub

Pipeline capacity trading

Energy National Cabinet Reform Committee announcement on priority gas market workstreams on 11 June 2021

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