The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Darwin against Gasgo Pty Ltd.
The ACCC is alleging that provisions contained in a 1985 gas supply agreement are in breach of section 45 of the Trade Practices Act 1974. The gas supply agreement is between Gasgo and a number of entities collectively called the Mereenie Producers.
Those provisions give Gasgo a pre-emptive right over gas supplied from the Mereenie field. The Mereenie Producers are required to offer to Gasgo in the first instance any quantity of gas that they may be negotiating with a third party on the same terms and conditions, including price, which would be offered to the third party.
In the ACCC's view the pre-emptive right is anti-competitive and represents a barrier to entry into the gas market and electricity generation in the Northern Territory.
The provisions came to light during the ACCC's examination of the Mereenie Producers' application for authorisation of the 1997 Gasgo Agreement. The ACCC issued its determination on 9 April 1999. (see media release MR 36/99).
The ACCC is alleging that provisions contained in a 1985 gas supply agreement are in breach of section 45 of the Trade Practices Act 1974. The gas supply agreement is between Gasgo and a number of entities collectively called the Mereenie Producers.
Those provisions give Gasgo a pre-emptive right over gas supplied from the Mereenie field. The Mereenie Producers are required to offer to Gasgo in the first instance any quantity of gas that they may be negotiating with a third party on the same terms and conditions, including price, which would be offered to the third party.
In the ACCC's view the pre-emptive right is anti-competitive and represents a barrier to entry into the gas market and electricity generation in the Northern Territory.
The provisions came to light during the ACCC's examination of the Mereenie Producers' application for authorisation of the 1997 Gasgo Agreement. The ACCC issued its determination on 9 April 1999. (see media release MR 36/99).