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Pipelines delivering for gas customers: APGA

New information confirms that gas plays a very significant role in Australia’s energy mix and that it is set to continue to be a source of lower-emissions power into the future, according to Australian Pipelines and Gas Association (APGA) Chief Executive Officer Steve Davies.

Speaking ahead of the Australian Domestic Gas Outlook 2018 conference to be held in Sydney this week, Mr Davies said the number of gas contracts being inked since new rules came into effect in August demonstrated the sector’s viability.

Staff portrait, Australian Pipelines and Gas Association, Barton, ACT, 26th May, 2017, photo Geoff Comfort 02 6286 1688

“Information we’ve received from our members suggests that Australian industry is able to negotiate satisfactory contracts for the transmission of the gas they need without bringing to bear any of the binding arbitration measures they now have available,” said Mr Davies.

“We are aware that more than 25 contracts have been negotiated with transmission pipeline operators since 1 August.

“The only conclusion we can draw is that customers are satisfied that they are getting a fair deal on gas transmission prices.”

APGA is the peak body representing gas transmission pipeline owners and operators, as well as suppliers of goods and services to the pipeline industry.

“Our members safely and efficiently transmit 640PJ of gas for domestic use through around 17,000km of high-pressure pipelines across the East Coast,” said Mr Davies.

“That’s about the same amount of energy delivered by the national electricity grid, so it is apparent that gas makes a substantial contribution to the nation’s economy.

“It is also worth noting that recent figures published by the Federal Department of Environment and Energy in the Gas Price Trends Review 2017 suggest that wholesale gas prices peaked in 2016 and began to come down in 2017.

“Importantly, that report shows that transmission costs remain a small proportion of gas bills for both residential and industrial energy-users with total transmission costs making up an average of 8 per cent for residential bills and less than 12 per cent of most industrial bills.”

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