At the ownership level we have seen the sale of Duke Energy International to AlintaGas. APIA has very much appreciated the support and contribution that Duke has made to Australian pipeline development and to our Association’s activities. Equally, we look forward to welcoming AlintaGas as a new APIA member.

Whilst the nature of ownership is changing, many of the people will remain engaged in pipeline activities. APIA looks forward to continuing a strong relationship with both the individuals and the companies involved.

At the policy level activity is underway as a result of the activities of the Productivity Commission’s Review of the gas access regime and the Ministerial Council on Energy.

APIA recently gave evidence to the Productivity Commission at hearings held to discuss their draft report on the Gas Access Regime. We have emphasised the importance of their work in creating an environment that is genuinely supportive of pipeline development and expansion. We have made detailed recommendations regarding the best means of overcoming the deficiencies and impediments to pipeline development identified in the Commission’s report.

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The final report is expected to be completed in June and will then be considered by the Ministerial Council on Energy in the final quarter of 2004. We shall be encouraging the Ministerial Council to adopt a strong deregulatory focus towards the gas transmission pipeline industry that recognises the importance of commercially negotiated outcomes, values the benefits of emerging pipelines on pipeline competition, ensures effective - but not overly intrusive – regulatory monitoring of pipelines and supports pipeline development through removal of regulatory risk for new Greenfield construction and pipeline expansions.

The Productivity Commission’s work forms part of a much larger and very ambitious reform agenda being pursued by the Ministerial Council on Energy. This covers both electricity and gas but it is apparent to APIA from the consultation papers we have seen to date that the electricity agenda remains the dominant consideration to governments. The failure to consider gas reform on its own merits is a major concern to the gas transmission sector. Over the next few months APIA will be involved in a number of aspects of the reform program including:

  • Governance and institutions, including establishment of the Australian energy regulator and the Australian energy market commission

  • The future shape of economic regulation

  • Gas market development

  • Transition to the new regime

As foreshadowed, this will be a very active and intensive agenda for APIA during 2004 but one that will not detract us from our other equally important tasks relating to the pipeline industry.