The challenges still facing the Australian gas industry as it moves to maximise competition will be identified in a major Australian Competition and Consumer Commission speech to the Australian Gas Industry Association's Gas Industry forum tomorrow
ACCC Deputy Chairman, Mr Allan Asher, will review the progress made in gas reform - and the challenges ahead.
"The ACCC is currently considering three pipeline Access Arrangements [the Central West (Dubbo) Pipeline, the Moomba-Adelaide Pipeline and the Moomba-Sydney Pipeline] and is expecting another three in the next few months," he said.
"Significant progress has been made in implementing gas reform in each jurisdiction, except in Queensland, which is yet to proclaim the Gas Law to bring the National Third Party Access Code for Natural Gas Pipeline Systems into effect.
"Queensland intends to derogate all tariff related maters for its five main pipelines from the operation of the code. Nevertheless, the Queensland Government has applied to the National Competition Council to have its Gas Pipeline Access Regime certified as 'effective' under Part IIIA of the Trade Practices Act 1974.
"The NCC has asked the ACCC to assess whether the Queensland tariff determination processes and outcomes for these five pipelines are broadly consistent with the National Gas Code. The ACCC will be relying heavily on the input of industry participants in undertaking this task".
Mr Asher will discuss the key remaining challenges for gas reform in Australia. These include completing this round of pipeline Access Arrangements and developing greater competition and flexibility in the supply of gas.
"New pipelines and pipeline interconnections are bringing basin on basin competition to markets for the first time.
"The ACCC welcomes the proposed Duke pipeline from Longford in Victoria to Sydney and the competition it should bring in gas supply in NSW. As gas markets continue to develop, there is more scope for separate marketing by gas producers within basins".
Mr Asher will express some concern about the Australian Petroleum Production and Exploration Association's recently released Third Party Access Principles for Upstream Facilities.
"The gas industry has been waiting for these Principles to be released for some time, and the ACCC is concerned that they lack some fundamental characteristics of effective access regimes. 'The APPEA principles do not provide a dispute resolution mechanism, do not contain any tariff setting principles, nor provide any specific timelines for negotiation.
"The ACCC believes that effective third party access to upstream facilities is an important element in developing greater competition in gas supply, particularly in Eastern Australia".
